KKR, a global investment firm, closed KKR North America Fund XIII (NAX3), an over-subscribed $19 billion fund focused on pursuing opportunistic private equity investments in North America. KKR will be investing $2 billion of capital in the fund alongside investors through the firm’s balance sheet, affiliates and employee commitments.
“We are thrilled to have had such strong receptivity to our fundraising effort, and we are extremely proud of the results we’ve been able to deliver for our investors,” Pete Stavros and Nate Taylor, co-heads of the Americas private equity platform at KKR, said. “Particularly at a time of continued volatility, we believe we are entering a macroeconomic environment that is tailor-made for private equity and for KKR specifically, and are grateful to have the support of our investors and their confidence in our team. We look forward to continue executing on our investment approach, which is centered on leveraging our deep industry expertise and driving holistic operational transformations utilizing the full suite of resources KKR has to offer. We are excited about the early momentum for NAX3 and remain laser focused on delivering outstanding results.”
KKR has a more than 45-year track record investing in North America. Over the past decade and across NAX3’s two predecessor funds, KKR North America Fund XI and KKR Americas XII fund, KKR has delivered an average gross IRR of 30.1% (25.1% net) and a gross multiple on invested capital of 2.6x (2.2x net). In comparison to the S&P 500, this has resulted in net outperformance of more than 850bps, against the backdrop of near-unprecedented performance of the index over that decade. KKR Americas XII fund, which began investing in 2017, is now fully deployed. It has generated a gross IRR of 50.1% (41.9% net), with a gross multiple of 2.6x (net 2.2x), as of Dec. 31, 2021. With the closing of NAX3, KKR’s Americas private equity platform has more than $90 billion in assets under management across flagship, growth and core investment vehicles.
“Thanks to the strength of our Americas private equity investment team and extensive collaboration across our firm, we are pleased to have been able to deliver consistent and attractive risk adjusted returns to our investors, even in the face of a global pandemic,” Alisa Amarosa Wood, global head of private markets and real assets product strategies at KKR, said. “With this closing of KKR’s largest fund in our history, we are excited by our investors’ shared enthusiasm for the investment opportunities we continue to see ahead.”
NAX3 received strong support from a diverse group of both new and existing investors globally, including public and private pension plans, sovereign wealth funds, insurance companies, endowments and foundations, private wealth platforms, family offices, high-net-worth individual investors and other institutional investors.
