Latest news with #KohlbergKravisRoberts
Mint
26-05-2025
- Business
- Mint
Mint Exclusive: KKR eyes its largest Asia infra fund topping $9 bn, India to corner a big slice
Private equity giant Kohlberg Kravis Roberts (KKR) is raising its third and largest-ever Asia infrastructure fund that could top $9 billion, said three people familiar with the matter, with a large share going to India's expanding road and energy to logistics networks. 'The firm has already secured commitments for a first close for the new fund from its limited partners and is expected to announce it soon," said the first of the three people, who spoke on the condition of anonymity. 'While the final fund size is yet to be confirmed as fundraising continues, it remains in the $9 billion range, with India remaining a key market, consistent with the previous funds." The new fund surpasses the debut Asia fund of $3.9 billion and the $6.4 billion fund II that closed last year. As much as 30% of the corpus could be allocated to Indian infrastructure, the people said. The country accounted for 25-30% of KKR's first two Asia funds. Also read | KKR looks to sell RE Sustainability again, may fetch $1.5 bn KKR is not alone. Rival global investors like Blackstone and Brookfield have also ramped up bets on Indian highways to renewable energy plants as the country expanded and upgraded its core infrastructure base over the past decade, driven by public and private capital. Morgan Stanley expects the overall spending on the sector to rise steadily from 5.3% of the GDP in FY24 to 6.5% by FY29. A combination of factors–government initiatives, rising urbanization, population growth, and increasing foreign investment–have served as key growth drivers for the infrastructure industry, encouraging innovation and strengthening value chains along the way, according to Vipin Singhal, director, Anand Rathi Investment Banking. 'As a result, India is increasingly being viewed as a strategic anchor for Asia-Pacific infrastructure portfolios, especially as investors diversify away from China due to ongoing geopolitical tensions." KKR's new fund is expected to focus on roads and highways, energy transition plays, besides renewables, while retaining flexibility to pursue other infrastructure-linked assets, the third person quoted above said. KKR declined to comment on Mint's queries. Big India bet KKR's Asia infrastructure strategy is led by Hardik Shah, who joined the firm in 2018. In 2021, it hired Ami Momaya from the National Investment and Infrastructure Fund (NIIF); she was promoted to managing director for infrastructure, Mumbai in January 2025. Over the past few years, KKR has stepped up its India play through investments in power transmission via India Grid Trust (Indigrid), renewable energy ventures like Virescent Infrastructure and Hero Future Energies, highway assets under Highway Infrastructure Trust, decarbonization efforts through Serentica Renewables, and warehousing with Leap India. KKR has also begun booking profits from the Indian market. In February 2024, it exited Indus Towers Ltd by selling its entire 4.85% stake for around ₹2,750 crore. In December, it pared a 2.6% unitholding in Indigrid--India's first listed power sector infrastructure investment trust (InvIT)--for ₹277 crore. Also read | KKR, Partners Group to lead Darwinbox funding round Although KKR recently exited from Indus Towers, India Grid Trust, and a few more infrastructure portfolio companies, KKR still plans to deploy its next $10 billion in India at an accelerated pace, signalling a long-term bet on India's growth story, Singhal said. While KKR has traditionally focused on credit, real estate, and private equity, it is now making a strong push into infrastructure—especially in tech-driven areas like data centres, cybersecurity, and AI platforms—aligning with India's digital transformation, he pointed out. 'It's more of a strategic reallocation rather than an exit from the Indian infrastructure space." During the firm's Q1 earnings call on 1 May, Craig Larson, partner and head of investor relations at KKR, said, 'We'd expect we'll have a couple of closes in America and we'll launch fundraising for the flagship Asia strategy on the heels of that…a topic that is becoming front of mind." Larson also pointed to ongoing fundraising across Asia infrastructure, wealth platforms, and climate-focused vehicles. As of this year, KKR has fully deployed capital from its first two Asia infra funds, said the third person cited earlier. The strategy, which began in 2019, has grown to roughly $14 billion in assets under management (AUM), forming part of KKR's broader $59 billion global infrastructure business. Rival global investors are stepping up their presence in Indian infrastructure. Brookfield said in May it plans to scale its India assets under management from $30 billion to $100 billion, with infrastructure, particularly energy, renewables, digital, transport, and utilities, at the core. Its current India infrastructure AUM stands at $12 billion. Blackstone, too, aims to double its India exposure from $50 billion to $100 billion, expanding into infrastructure and credit alongside its large real estate play, the firm said in March. Tailwinds ahead The surge in global capital coincides with robust market projections for the country's infrastructure sector. India's logistics sector, valued at $317.26 billion in 2024, is expected to grow to $484.43 billion by 2029, while the warehousing market is projected to reach ₹2,243.79 billion by 2026, an annual growth rate of nearly 11%, according to a February report by the India Brand Equity Foundation (IBEF), a trust under the commerce ministry. The country improved its ranking in the World Bank's Logistics Performance Index to 38 in 2023, up from 44 in 2018, Singhal of Anand Rathi Investment Banking said. Also read | KKR to acquire control of HealthCare Global in $400 million deal Real estate (Reits) and infrastructure investment trusts (InVITs) are playing an increasingly important role in funding these projects. Reits and InVITs have amassed $15.6 billion ( ₹1.3 lakh crore) in four years through March 2024, the IBEF report said, citing data from the Reserve Bank of India. India's real estate sector, according to the report, alone drew $2.77 billion in investments in the second quarter of 2024. The push continues in the Union Budget 2025–26, with the capital investment outlay for infrastructure raised to ₹11.21 trillion, or 3.1% of the GDP, up from ₹10 trillion in the previous fiscal, amid the government's continued emphasis on infrastructure-led growth. According to Singhal, India is set for a major infrastructure push by FY28, with road investments expected to nearly double from $28 billion to $53 billion (17% CAGR), irrigation and water from $113 billion to $208 billion (13% CAGR), railways from $122 billion to $196 billion (13% CAGR), and energy and power from $161 billion to $282 billion (15% CAGR).
Nikkei Asia
24-05-2025
- Automotive
- Nikkei Asia
India's Motherson eyes top 10 in auto parts with Marelli bid
TOKYO -- Motherson Group's bid to acquire embattled Japanese auto parts maker Marelli Holdings from U.S. investment firm Kohlberg Kravis Roberts is part of a goal to transform the Indian company into a top 10 auto parts supplier through an aggressive merger and acquisition strategy. The key to Motherson's success has been diversity. While it is firmly an auto parts company that has enjoyed a robust domestic market, its policy has been not to rely on a specific group of products, customers or country as a market.
Yahoo
09-04-2025
- Business
- Yahoo
GP surgeries owner Assura agrees to private equity takeover worth £1.61bn
Property and GP surgeries owner Assura (ARSSF) has agreed to be taken over by a US private equity giant in a deal worth £1.61 billion, after becoming the target of a bidding war. The London-listed company will be bought by Kohlberg Kravis Roberts (KKR) and Stonepeak Partners. The investment groups offered 49.4p per Assura share, having increased a number of previous bids to buy the business. Assura owns more than 600 buildings, including doctors' surgeries, with a portfolio valued at more than £3.1 billion. It has just 79 members of staff. The firm said it had rejected a different takeover approach worth £1.5 billion from real estate investment group Primary Health Properties (PHP). The proposal was 'not at a level that is sufficient to be recommended to shareholders', it said. Assura chief executive Jonathan Murphy said the agreed takeover 'enables the company to accelerate its growth via additional investment in critical healthcare infrastructure in the UK and Ireland'. KKR and Stonepeak plan to invest in Assura and grow the company, bringing 'deep pockets and an understanding of UK infrastructure and real estate', bosses said. KKR has shot into the spotlight recently, having been picked as a preferred bidder by troubled utility giant Thames Water. England's biggest water firm is looking to secure a buyer to help stabilise its finances,. Last month, it said it had chosen KKR to go through a second phase of the process to secure equity investment, having received six approaches from firms. Sign in to access your portfolio
The Independent
09-04-2025
- Business
- The Independent
GP surgeries owner Assura agrees to private equity takeover worth £1.61bn
Property and GP surgeries owner Assura has agreed to be taken over by a US private equity giant in a deal worth £1.61 billion, after becoming the target of a bidding war. The London-listed company will be bought by Kohlberg Kravis Roberts (KKR) and Stonepeak Partners. The investment groups offered 49.4p per Assura share, having increased a number of previous bids to buy the business. Assura owns more than 600 buildings, including doctors' surgeries, with a portfolio valued at more than £3.1 billion. It has just 79 members of staff. The firm said it had rejected a different takeover approach worth £1.5 billion from real estate investment group Primary Health Properties (PHP). The proposal was 'not at a level that is sufficient to be recommended to shareholders', it said. Assura chief executive Jonathan Murphy said the agreed takeover 'enables the company to accelerate its growth via additional investment in critical healthcare infrastructure in the UK and Ireland'. KKR and Stonepeak plan to invest in Assura and grow the company, bringing 'deep pockets and an understanding of UK infrastructure and real estate', bosses said. KKR has shot into the spotlight recently, having been picked as a preferred bidder by troubled utility giant Thames Water. England's biggest water firm is looking to secure a buyer to help stabilise its finances,. Last month, it said it had chosen KKR to go through a second phase of the process to secure equity investment, having received six approaches from firms.
Yahoo
22-02-2025
- Business
- Yahoo
With 7%+ dividend yields, are these among the FTSE 250's best passive income stocks?
As interest rates look set to fall further in the coming year, trying to earn passive income from cash savings seems less attractive. Stocks and Shares ISAs are looking ever better to me. And quite a few FTSE 250 stocks are catching my attention for their attractive dividends. Assura (LSE:AGR) is one, with a 7.9% forecast dividend yield. It's a real estate investment trust (REIT) with a portfolio of leased-out heathcare properties. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. The Assura share price slide of the past five years is painful. But on Monday (17 February), the stock gained 9% in a single day on news of a takeover approach. US private equity firm Kohlberg Kravis Roberts made overtures regarding a possible cash offer at 48p per share. That's 23% above the closing price on 14 February. The board says the offer would 'materially undervalue' the company and has rejected it. Buying a dividend-paying stock only to have it bought out underneath us for cash means we'd be looking for something else to buy pretty quick. But at least we might have more cash to invest if we make a quick profit. I wouldn't consider it for that though, as these things have a habit of disappointing. If no deal comes off, I'd expect the share price to fall back. And we could be back to worrying about that long-term price fall again. Any kind of commercial real estate surely still faces uncertainties too. But this tells me I'm not the only one who thinks a lot of our FTSE 250 REITs like Assura are worth considering now. At least one big US investor appears to agree. Zigup (LSE: ZIG) might not be a name that gets investors' heads nodding in recognition. But it's really just the old Redde Northgate which changed its name last year. The new name for the vehicle rental and fleet management firm is apparently 'allied to a refreshed strategic framework under the new pillars of Enable, Deliver and Grow'. I don't really know what that means. But I do like Zigup's 8.3% forecast dividend yield. I'm less impressed by the 16% fall in underlying first-half earnings per share (EPS) the company posted in December. But it did say at the time that its 'outlook is unchanged and remains in line with market expectations'. Those expectations include a full-year EPS fall, but a return to earnings growth in 2026. We'd be looking at a price-to-earnings ratio of eight for the 2025 year, dropping to seven on 2027 forecasts. And there's a solid Buy consensus. Analysts expect further dividend rises, well covered by earnings. The dividend has been growing over the long term, with just a few minor dips. Together, they make me think Zigup has to be worth considering for those wanting to build up a passive income pot. We're still in a tough market here with plenty of competition. And a shaky economy could put pressure on business rentals. But I think the signs look good. The post With 7%+ dividend yields, are these among the FTSE 250's best passive income stocks? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
