KKR makes headway raising second impact fund

As well as collecting investor capital for private equity impact, KKR is also reportedly preparing to launch two ESG-themed credit funds.

Private markets heavyweight KKR is making progress marketing its second private equity impact fund. The firm first registered the vehicle with regulators in June 2021 and a recent filing shows the fund having raised just shy of $1.5 billion across its various parallel vehicles. It is not clear how much the firm intends to raise for the fund, which is already larger than its $1.3 billion, 2018-vintage predecessor.

KKR’s Global Impact strategy backs companies that provide solutions to challenges in four thematic categories: climate action, sustainable living, lifelong learning and inclusive growth. As of March this year, the firm reported a gross multiple of invested capital of 1.7x and a net IRR of 37 percent for the first Global Impact Fund.

As well as collecting investor capital for private equity impact, KKR is also preparing to launch two ESG-themed credit funds, according to a report from Reuters, which cites an internal memo. The first fund will be climate-focused, investing in publicly traded debt, while the second fund will “deploy a range of private debt investing strategies including direct lending, junior debt, asset-based finance and opportunistic credit”, reports Reuters.

KKR declined to comment on fundraising activity for either the impact or credit strategies.

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