KKR has announced a significant milestone in impact investing with the final closure of its $2.8bn KKR Global Impact Fund II.
According to ESG Today, this new fund has successfully garnered over twice the capital of its predecessor, signifying a robust investor appetite for sustainable and impactful investments.
The $2.8bn raised by KKR highlights a formidable commitment from a diverse group of investors including public pensions, family offices, insurance companies, and other institutional investors. Additionally, KKR has reinforced its confidence in the fund’s strategy by committing $250m alongside its investors.
KKR Global Impact Fund II operates with a clear mandate: to invest in companies that demonstrably advance the United Nations Sustainable Development Goals (SDGs). These 17 goals, which include targets such as eradicating poverty and hunger, aim to guide global efforts to deliver a more sustainable future for all.
The fund’s objective is not just about societal gain but also financial performance. It strategically directs investments towards companies where these two elements are intertwined. Investment themes range from Climate Action and Sustainable Living to Lifelong Learning and Inclusive Growth, tackling global issues like climate change, reliance on non-renewable resources, and social inequality.
In this latest round, KKR illustrates the growing trend of investors prioritising funds that promise to tackle some of the most pressing global challenges. Ken Mehlman, KKR Partner and Co-Head of KKR Global Impact, expressed the urgency felt globally to address significant challenges like the energy transition and the digital divide. He further highlighted the growing need for upskilling, as evidenced by research from Lightcast, a portfolio company, indicating a 37% change in skills requested for the average U.S. job since 2016.
“Our Global Impact strategy is well-positioned to invest behind these macro tailwinds,” Ken Mehlman said.
The previous success of KKR’s inaugural Global Impact Fund, which closed at $1.3bn, laid a strong foundation for this second fund. Robert Antablin, KKR Partner and Co-Head of KKR Global Impact, reflected on the journey since the strategy’s launch in 2018, stating, “We launched KKR Global Impact because we saw an opportunity to invest behind proven companies that deliver scalable, commercial solutions to global problems. Since then, that opportunity set has continued to grow, and we are thrilled with the outcomes our portfolio companies have been able to achieve.”
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