Keppel Gains S$4.9bn Backing for Infrastructure Funds
Written by Rebecca Uffindell Thu 24 Apr 2025
Keppel has secured new capital commitments totalling approximately S$2 billion (£1.1 billion) across three of its flagship strategies: Keppel Data Centre Fund III (KDCF III), Keppel Education Asset Fund II (KEAF II), and its Sustainable Urban Renewal (SUR) strategy.
The new commitments bring the firm’s total Funds under Management (FUM) to S$4.9 billion (£2.8 billion).
The Singapore-based asset manager and operator said the capital was raised from global institutional investors, reflecting continued appetite for alternative real assets aligned with structural trends in urbanisation, digitalisation and sustainability.
“The securing of about S$2.0 billion (£1.1 billion) in capital across Keppel’s flagship funds reflects the resilient demand for high-quality alternative real assets anchored to macrotrends such as climate change and energy transition, urbanisation as well as rapid digitalisation and the AI wave,” said Christina Tan, CEO of Fund Management and Chief Investment Officer at Keppel. “This significant milestone brings us closer to our interim FUM target of S$100 billion by 2026, with ambitions to reach S$200 billion (£114.5 billion) by 2030.”
Keppel Funds Target Data, Education and Decarbonisation
Keppel’s third data centre fund, KDCF III, achieved its first close with approximately S$786 million (£435.6 million) in initial commitments. The fund will invest in data centres across the Asia Pacific region with a focus on sustainable design and pre-committed leasing from hyperscale customers.
Tan added, “Notwithstanding the current volatile international environment, Keppel is well-positioned to offer both critical solutions that the world needs, and defensive investment products that can help to steady investors’ portfolios. We are committed to delivering strong returns to our Limited Partners, leveraging Keppel’s deep operating capabilities in sustainability and connectivity solutions.”
Meanwhile, KEAF II secured around S$413 million (£230.6 million) in its first close, drawing support from a returning sovereign wealth fund and new investors from the insurance and pension sectors. The fund targets value-add education-related assets across the Asia Pacific region.
Keppel also raised S$760 million (£435.4 million) for its Sustainable Urban Renewal strategy, which focuses on decarbonising the built environment. The strategy’s cumulative FUM now stands at approximately S$4.3 billion (£2.4 billion), with new backing from one of Europe’s largest pension funds.
The company said the developments are not expected to have a material impact on its earnings per share or net tangible assets per share for the current financial year.
Written by Rebecca Uffindell Thu 24 Apr 2025