New York private equity firm Kohlberg Kravis Roberts & Co. is entering infrastructure investing, announcing plans to start an initiative focused on infrastructure assets worldwide.
It has hired George Bilicic, who will move over from Lazard on June 2, to coordinate the effort.
Infrastructure funds have risen in popularity of late, which Bilicic attributes to the need for deployment of capital in sectors including electric and gas utilities, water, transportation (including roads, bridges and tunnels), gas pipelines and airports. "Across the economy and across nations, there's a fundamental need for this asset class," Bilicic said.
... The new infrastructure investment team, which will maintain a presence in Europe, Asia and the U.S., will work with KKR's other industry groups with experiences in regulated businesses.
... Many Wall Street firms have been busy raising capital for infrastructure funds of late. Global Infrastructure Partners Ltd., which Credit Suisse Group and General Electric Co. established, recently raised $5.64 billion for its fund, while Morgan Stanley Infrastructure Partners raised $4 billion for its vehicle, which was oversubscribed.
Goldman, Sachs & Co., following suit, is out raising a targeted $7.5 billion fund. Also out drumming up capital are Citigroup Inc., which is marketing a $5 billion infrastructure fund, and Macquarie Capital Group Ltd. and State Bank of India, which recently unveiled plans to co-raise a $2 billion infrastructure fund.
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