KKR closed KKR Global Impact Fund II, a $2.8 billion fund dedicated to investing in companies whose products and services contribute measurable progress toward the United Nations’ Sustainable Development Goals. The fund is the successor fund to the first KKR Global Impact Fund.
The new fund received backing from a group of new and existing global investors, including public pensions, family offices, insurance companies and other institutional investors. KKR will be investing $250 million of capital in the fund alongside investors through the firm’s balance sheet, affiliates and employee commitments.
“We launched KKR Global Impact in 2018 because we saw an opportunity to invest behind proven companies that deliver scalable, commercial solutions to global problems,” Robert Antablin, a partner at KKR and co-head of KKR Global Impact, said. “Since then, that opportunity set has continued to grow, and we are thrilled with the outcomes our portfolio companies have been able to achieve. We are grateful for the support of our investors who share our conviction in this space, which we believe is well placed given the strong performance of our first fund.”
KKR’s Global Impact Fund contributes to the UN’s goals by investing in companies where financial performance and positive societal impact are aligned, with a focus on four key investment themes: climate action, sustainable living, lifelong learning and inclusive growth. These themes seek to address challenges such climate change and its consequences, the reliance on non-renewable resources and increasing waste, a lack of access to quality education and the widening skills gap, and social and economic inequality.
“Globally, there is increased urgency to solve some of the world’s greatest challenges, such as the energy transition, supply chain resiliency, digitization and a shortage of skilled workers. For example, analysis by KKR Global Impact portfolio company Lightcast found that the skills requested for the average U.S. job have changed 37% since 2016, requiring a significant acceleration of upskilling1,” Ken Mehlman, a partner at KKR and the co-head of KKR Global Impact, said. “We believe our Global Impact strategy is well-positioned to invest behind these macro tailwinds.”
Since its launch in 2018, KKR Global Impact has invested in 18 companies, including GreenCollar, CoolIT, Advanta, Lightcast (formerly known as Emsi Burning Glass) and CMC Machinery.
