KKR aims to top $10 bln total for eight Fund IIs

  • Scott Nuttall taking aim at second-generation fund series
  • KKR launched eight new fund families since 2010
  • Nuttall sees 2x to 3x more for series of Fund IIs

KKR raised about $10 billion since about 2010 for new fund families to branch out from its flagship, KKR North America Fund XI, which closed on $9 billion in 2012.

Scott Nuttall, member and head of global capital and the asset management group at KKR, said these new fund families have turned in “good performance throughout” and that KKR is starting to think about or  actively raise Fund IIs for the various strategies.

“We’ve got the opportunity to raise significantly more in Fund II—could be two or three times what we raised in Fund I with the same team,” Nuttall said June 10 at the Morgan Stanley Financials Conference, according to a transcript of his remarks.

While 2x or 3x may seem lofty, KKR already has managed to raise about $20 billion in the last 12 months across its network of 730 investors, up from 345 investors in 2010.

“We think there’s meaningful opportunity to grow from here,” Nuttall said. ”A lot of progress left to be made, but significant progress made in the last few years.”

The distinction of the largest of KKR’s crop of inaugural funds goes to 2011 vintage KKR Global Infrastructure Investors, which raised $2.4 billion, according to data from the Thomson One private equity database. That is followed by the 2013 vintage KKR Energy Income & Growth Fund and the 2013 vintage KKR Special Situations Fund LP, which have raised about $2 billion each. KKR Real Estate Partners Americas raised $1.5 billion in 2013 and KKR Natural Resources Strategy Fund from 2011 raised $1.6 billion. Others raised about $1 billion each including the 2010 vintage KKR Mezzanine Partners I and the KKR China Growth Fund. The smallest of the group is the 2011 vintage KKR India Fund, which raised $375 million, according to Thomson One.

The firm’s plans to hatch a series of Fund IIs came after Nuttall said in April that the firm’s KKR European Fund IV and second funds for infrastructure and direct lending would be a focus for the remainder of 2014.