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Global investment firm KKR raises £2.2bn for second global impact fund

Written by Mon 6 Nov 2023

Global investment firm KKR has raised £2.2 billion ($2.8 billion) at the close of its second global impact fund. 

Global Impact Fund II is focused on investing in companies whose products and services contribute measurable progress toward the United Nations Sustainable Development Goals

The KKR Global Impact Fund focuses on four key themes: climate action, sustainable living, lifelong learning, and inclusive growth.

Partner and Co-Heads of KKR Global Impact at KKR, Ken Mehlman and Robert Antablin, said to Reuters that increased investment opportunities resulted in the firm receiving commitments from investors. These commitments more than doubled its initial £1 billion ($1.3 billion) impact fund raised in 2020.

“Globally, there is increased urgency to solve some of the world’s greatest challenges, such as the energy transition, supply chain resiliency, digitisation and a shortage of skilled workers,” said Mehlman.

KRR launched Global Impact in 2018 because the company saw an opportunity to invest in companies that deliver scalable, commercial solutions to global problems.

“We are grateful for the support of our investors who share our conviction in this space, which we believe is well placed given the strong performance of our first fund,” said Antablin.

KKR’s Global Impact Fund has invested in 18 companies since its launch in 2018, including CoolIT Systems, BBP, and KnowBe4. 

CoolIT Systems provides liquid cooling solutions for data centres, which enhances energy efficiency in user facilities.

CoolIT met the UN’s Sustainable Development Goals by supporting goals 7 (Clean Energy), 9 (Industry and Infrastructure), and 13 (Climate Action). The deal was valued at £217 million ($270 million).

In 2018, the Impact Fund invested in BBP. The company specialises in providing energy-saving solutions tailored for heating, ventilation, and air conditioning systems used in commercial and industrial environments, including data centres.

By utilising the Internet of Things, data analytics, artificial intelligence, and machine learning, BBP reduces energy consumption and utility expenses for its users. This strategic approach aligned with KKR’s climate action investment theme.

In 2019, the Impact Fund invested in KnowBe4 as part of KKR’s inclusive growth investment theme. The company offers cybersecurity awareness training software, aiding clients in protecting themselves against cyberattacks. 

KnowBe4 also contributes to the reduction of personally identifiable information exposure and data breaches through its software platform.  KKR said the KnowBe4 strengthens the digital infrastructure that is essential for stable economies and resilient institutions.

The Impact Fund also has the option to invest in companies alongside other private equity funds managed by KKR. The Impact Fund operates independently and invests on its own, separate from other KKR funds in most cases.

Image Credit: Reuters

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Written by Mon 6 Nov 2023

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