Global investment firm KKR is combining its infrastructure and real estate assets under a single leader, a person familiar with the matter said on Wednesday.
The combined unit, whose assets will come to $157 billion, will be headed by Raj Agrawal, who was previously the head of global infrastructure, the source added.
The move will combine some of the best-performing areas of investments, infrastructure, with real estate, which has shown a relatively slower growth in recent times.
KKR‘s infrastructure portfolio generated a gross return of 18% in the 12 months ended Sept. 30 2024, compared to a 3% return in the opportunistic real estate portfolio in the same period.
Agrawal, speaking at a Barclays Global Financial Services Conference last year, had predicted that industrial infrastructure was an area of high-growth in the days to come.
Global head of real estate, Ralph Rosenberg, will be the chairman of the combined business – real assets, the source said, adding that the announcement of the combination was made internally.
KKR‘s total assets under management stood at $624 billion on Sept. 30, up 18% from the levels at the end of September 2023.
The investment firm, which is scheduled to post its fourth-quarter results early next month, saw a nearly 79% jump in its shares in 2024.
Reuters
