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Tuesday, May 21, 2024

Asia’s largest infrastructure market in India is KKR


<p><strong>Mumbai:</strong> Mumbai According to KKR, a massive private equity firm located in the US, infrastructure financiers are finding that India is one of the largest marketplaces in Asia.</p>
<p><img decoding=”async” class=”alignnone wp-image-441368″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-asias-largest-infrastructure-market-in-india-is-kkr-file-photo-trading-information.jpg” alt=”theindiaprint.com asias largest infrastructure market in india is kkr file photo trading information” width=”971″ height=”728″ title=”Asia's largest infrastructure market in India is KKR 15″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-asias-largest-infrastructure-market-in-india-is-kkr-file-photo-trading-information.jpg 600w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-asias-largest-infrastructure-market-in-india-is-kkr-file-photo-trading-information-150×113.jpg 150w” sizes=”(max-width: 971px) 100vw, 971px” /></p>
<p>The $6.4 billion Asia Pacific Infrastructure Investors II fund, which KKR completed earlier this month, would see a large portion of its capital deployed in India.<br />
“India is probably the deepest market for infrastructure in Asia because there is so much infrastructure build happening, and a lot of it is in the private sector, and the government has the national monetisation pipeline which brings a lot of public sector assets into private hands on a 20-30-year basis,” said Hardik Shah, a partner in KKR’s infrastructure in the country.</p>
<p>The firm is presently investing more money in India than ever before. “KKR has been an investor in India for close to 20 years, and our investment, which stands at upwards of $10 billion, continues to ramp upward,” Shah said. Infrastructure makes up $3 billion of the $10 billion. “Of our infrastructure funds, one-third are in roads, another one-third in renewables, and the rest in everything else,” Shah said.<br />
In the past fifteen years, the industry has developed, he said, and there is a good degree of assurance and what you see is what you get. “Finally, the ecosystem is in place with a vibrant ecosystem of different types of investors including InvITs, private equity funds like ourselves, and direct investors who want to invest in infrastructure,” Shah said.</p>
<p>According to Shah, one of KKR’s main Asian markets is India. “The top five are India, Korea, Japan, South East Asia, Australia, and New Zealand,” He continued by saying that this fund has not been as focused on China as it is on its infrastructure.<br />
KKR has added another $250 million to its $400 million acquisition of Serentica Renewables, a platform for decarbonization. A pallet pooling platform called LEAP India was bought by KKR last year, and the team just signed 12 road projects for a total of Rs 9000 crore.</p>
<p>“KKR has been an investor in India for close to 20 years, and our investment, which stands at upwards of $10 billion, continues to ramp upward,” Shah said. Infrastructure makes up $3 billion of the $10 billion. “Of our infrastructure funds, one-third are in roads, another one-third in renewables, and the rest in everything else,” Shah said.<br />
In the meanwhile, India is projected to generate about 25% of the global incremental growth over the next five to seven years, according to a research by KKR’s chief investment officer.</p>
<p>The government is estimated to shift $4–$5 billion in infrastructure annually to the private sector, giving the expansion an efficiency boost.<br />
“India could be one of the largest investment arenas to deploy capital in Asia over the next five to seven years if the country continues to stay the course on its current reform-minded path,” said Henry H. McVey, KKR’s balance After the $6.4 billion fund closed, McVey traveled to India to conduct an in-person assessment of the country’s investment environment.</p>


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