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KKR Raises $13.9 Billion Private Equity Fund

KKR Americas XII Fund is the largest ever private-equity fund focused on the Americas.

  • Christine Idzelis

KKR & Co., the buyout firm run by Henry Kravis and George Roberts, has raised a $13.9 billion fund to invest in private-equity deals in the U.S., Canada and Mexico.

KKR Americas XII Fund is the largest ever Americas-focused private-equity fund, the New York-based asset manager announced Monday, citing data from research firm Preqin. KKR will invest almost $1.4 billion from its balance sheet and employee commitments alongside the fund’s new and existing investors, including public pensions, sovereign wealth funds and insurance companies.

“In today’s increasingly complex world, we are pleased that they share our enthusiasm for the opportunities that lie ahead in the Americas, in particular the U.S. where we anticipate significant long-term investment opportunities,” Alexander Navab, KKR’s head of Americas private equity, said in the announcement.

The group will seek traditional management buyouts, growth equity deals, as well as “public toehold” investments where KKR may partner with public companies. The firm’s investments will be made through seven industry teams, including energy, financial services, healthcare, industrials, media & communications, retail and consumer, and technology.

KKR, which was co-founded in 1976 by Jerome Kohlberg and co-CEOs Kravis and Roberts, has invested a total $48.5 billion of equity in the Americas through the firm’s previous 11 North America private equity funds, according to the statement.

Some of the biggest investors in private equity today are Canadian pensions, according to a Preqin ranking last month. Canada Pension Plan Investment Board was No. 1 with $44.4 billion allocated to the asset class, or nearly 16 percent of its total portfolio. Ontario Teachers’ Pension Plan and Caisse de dépôt et placement du Québec also ranked among the top ten, with investments of $21 billion and $20 billion, respectively.

The second-biggest investor in private equity is Abu Dhabi Investment Authority, a sovereign wealth fund with a $39.6 billion allocation to the asset class, according to Preqin. The third largest is GIC, a sovereign wealth fund in Singapore, followed by California Public Employees’ Retirement System at fourth with a $25.4 billion allocation to private equity.