Global private equity firm KKR and Co. has launched a road infrastructure investment fund in India.
Highways Infrastructure Trust is KKR’s third infrastructure investment trust in India, following India’s first renewable energy InvIT, Virescent Renewable Energy Trust and transmission InvIT, India Grid Trust, according to media releases.
Together, these platforms manage and manage 33 assets worth more than $3.8 billion in 22 states or federal territories of India. Highways Infrastructure Trust’s initial portfolio consists of six road structures spanning over 450 kilometers in six states.
The assets include a diverse mix of toll roads and pension roads in Gujarat, Madhya Pradesh, Meghalaya, Rajasthan, Tamil Nadu and Telangana.
KKR also said the trust is reviewing its pipeline of acquisition targets.
“The platform has significant growth potential and is targeted to invest in high-quality assets, including bolt-on acquisitions.”
The deal comes at a time of growing demand for expansion of India’s road network, the world’s second-largest because of the growing number of people in the world.
The company sees transport, renewable energy and power transmission as key to its infrastructure strategy in India.
In addition to the Trust, KKR and Co. is an investor in the telecommunications and retail businesses of Reliance Industries Ltd. and active investments in home furnishing companies Livspace, Shriram General Insurance Ltd. and Max Healthcare Institute GmbH. It’s also home. and Vini Cosmetics Pvt., etc.
In Asia Pacific, KKR takes a flexible approach to infrastructure investment, combining local knowledge and skills with the company’s global industry and operational expertise. Globally, KKR’s infrastructure portfolio manages over $40 billion in assets across a broad range of sectors including, but not limited to, transportation, renewable energy, power and utilities, water and wastewater, and telecommunications.
In India, KKR sees transport, renewable energy and transmission as core to its infrastructure strategy.
The introduction of HIT builds on KKR’s longstanding commitment in India.
Since opening an office in Mumbai in 2009, KKR has over 20 investments in India and today he has over 12 active portfolio companies.
