India Takes Center Stage as KKR Raises $6.4 Billion for Asia Infrastructure

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Disclaimer: The following article is for informational purposes only. The content does not constitute financial or investment advice. Readers are encouraged to conduct their own research and consult with a qualified professional before making any investment decisions.

Global investment firm KKR recently closed a $6.4 billion pan-Asian infrastructure fund, signaling its intent to channel significant investments into India, particularly focusing on roads and renewable energy projects.

Hardik Shah, Partner and Head of Infrastructure Investing in India at KKR, emphasized India's pivotal role in the firm's global infrastructure investment strategy. He stated that India is poised to receive a substantial influx of investments as part of KKR's broader plans.

The Asia Pacific Infrastructure Investors II Fund, which concluded its fundraising on February 1, has identified India, along with South Korea, Southeast Asia, Japan, Australia, and New Zealand, as key investment destinations.

KKR's first Asia fund allocated approximately 30 percent of its $3.9 billion capital to Indian infrastructure projects. Shah indicated that the firm intends to maintain a similar investment pattern, given India's continued prominence in their strategy. Notably, the new fund will not prioritize China, as KKR sees greater potential in other markets. Since 2019, KKR has already invested over $3 billion in Indian infrastructure initiatives.

Shah underscored India's significant role in both of KKR's funds, with strong support from limited partners (LPs) encouraging further investments in the region.

KKR aims to diversify its Indian portfolio by allocating investments evenly across roads, renewables, and other promising sectors. With a total investment of $10 billion in India thus far, infrastructure remains a key area of growth for the firm.

In its quest to double its asset management business, currently standing at around $553 billion globally, KKR is prioritizing infrastructure, climate, private wealth, and the Asia-Pacific region. The firm manages a substantial $59 billion worth of assets in the infrastructure sector alone on a global scale.

Shah highlighted the remarkable evolution of India's asset availability and investment attractiveness over the past 15 years. He noted that investors are now more discerning and cautious in evaluating investment opportunities. Private equity firms worldwide are showing keen interest in India, particularly focusing on sectors such as healthcare, information technology, real estate, and infrastructure.


KKR stands out as a major player investing heavily in India's growth story. Among its competitors, Blackstone Inc., based in the US, holds the title of the largest private equity investor in India, with investments exceeding $50 billion across various sectors including healthcare, warehousing, and real estate.

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