KKR Commits $2.8B to Impact Investments
KKR and Co
KKR, a prominent global investment firm, has recently announced the successful closure of KKR Global Impact Fund II, also known as "GIF II."
This fund, valued at $2.8 billion, is exclusively dedicated to supporting companies whose products and services actively contribute to achieving the United Nations Sustainable Development Goals (SDGs). It serves as the successor to the original KKR Global Impact Fund.
Robert Antablin, a Partner and Co-Head of KKR Global Impact, expressed the firm's motivation behind launching KKR Global Impact in 2018. The initiative aimed to invest in established companies capable of delivering scalable, market-driven solutions to global challenges.
Since its inception, the potential for such investments has continued to expand, resulting in impressive achievements by portfolio companies. KKR is deeply appreciative of the support received from investors who share their commitment to this endeavour, particularly in light of the strong performance of their initial fund.
KKR Global Impact contributes to the SDGs by targeting investments in companies where financial success and positive societal impact go hand in hand. Their focus centres on four primary investment themes: Climate Action, Sustainable Living, Lifelong Learning, and Inclusive Growth.
These themes are designed to address critical and locally relevant issues, such as climate change and its repercussions, reducing reliance on non-renewable resources and curbing waste, improving access to quality education, closing the skills gap, and addressing social and economic inequalities.
Ken Mehlman, another KKR Partner and Co-Head of KKR Global Impact emphasised the growing urgency to address pressing global challenges, including the energy transition, supply chain resilience, digitisation, and the shortage of skilled workers.
To illustrate this, analysis from a KKR Global Impact portfolio company, Lightcast, revealed that the skills required for the average U.S. job have evolved by 37% since 2016, underscoring the need for significant upskilling. The Global Impact strategy is strategically positioned to invest in response to these significant macroeconomic trends.
The KKR Global Impact team, composed of more than 20 dedicated professionals, benefits from the full range of resources offered by KKR, extending beyond financial backing to provide comprehensive support to the companies they invest in. Since its establishment in 2018, KKR Global Impact has invested in 18 companies, including notable names like GreenCollar, CoolIT, Advanta, Lightcast (formerly known as Emsi Burning Glass), and CMC Machinery.
The Fund received robust support from a diverse group of investors, both new and existing, including public pension funds, family offices, insurance companies, and other institutional investors. KKR has also committed $250 million of capital to the Fund, investing alongside other stakeholders through the firm's balance sheet, affiliates, and employee contributions.
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Source: Business Wire