KKR Seeks to Raise $100 Billion by 2022 After Record Year

(Bloomberg) -- KKR & Co. expects to raise more than $100 billion by 2022, building on last year's record and an abundance of growth opportunities.

"We have many more strategies coming to market now than we did at the beginning of 2020," Scott Nuttall, KKR's co-president, said Tuesday at the New York-based firm's virtual investor day. "Our fundraising pipeline is very large."

KKR took in a record $44 billion last year as investors sought higher-yielding assets. The firm, which oversees $252 billion, has been among the most active dealmakers during the Covid-19 pandemic, investing through the downturn to avoid mistakes it made in the aftermath of the 2008 financial crisis.

The firm expects to reach its goal by raising $40 billion to $50 billion in private equity, $15 billion to $20 billion in infrastructure, $10 billion to $15 billion in real estate and $20 billion to $25 billion in credit.

KKR is either already in the market with or planning to raise capital for more than 20 strategies this year and next, including its flagship Americas and Europe private equity funds as well as its global impact and opportunistic real estate funds, according to the presentation.

Earlier this month, KKR said it brought in $15 billion for its biggest buyout fund in Asia, the largest private equity pool in the region. The firm is also seeking about $12 billion for its fourth global infrastructure fund, Bloomberg has reported.

KKR shares gained 28% this year through April 12 compared to an increase of 21% for Carlyle Group Inc. and 19% for Blackstone Group Inc. Apollo Global Management Inc. fell 2.9% in that period.

"We're continuing to see robust demand from LPs of really all types across products," Nuttall said at the event. "It's been really hard for investors to find return in the public markets, both equities and credit, especially those that are focused on looking for yield. And so we're finding more and more investors shifting a larger percentage of their investment portfolio to alternatives."

Nuttall said the firm is seeing investor interest in anything that's yield-based, and that there's a significant amount of interest in Asia.

The firm also touted its focus on technology, with Co-President Joe Bae saying the sector has been the single largest destination of capital across its large-scale private equity businesses in the last three years. Digital has also been a major component of the firm's real asset platforms, Bae said.

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