Global investment firm Kohlberg Kravis Roberts & Co. LP and affiliates (KKR) said its energy and infrastructure platform now manages $4 billion in non-private equity related assets following its most recent fund closings.
The infrastructure fund had a final close on more than $1 billion, which, in addition to the $1.3 billion of already committed infrastructure-related separate accounts, brings total infrastructure committed capital to $2.4 billion. The natural resources fund also had a close, bringing total commitments to $1.25 billion, which, in addition to $350 million of capital outside the fund, brings total committed capital for natural resources to $1.6 billion, KKR said. Both funds include committed capital from insurers, pension plans and family offices.
KKR Natural Resources (KNR) acquires and operates oil and gas properties that are largely comprised of proved, developed producing reserves. To date it has completed six transactions, acquiring more than $950 million of assets in core operating regions in the Barnett Shale, East Texas, North Louisiana, Mississippi and the Texas Gulf Coast. With more than $1 billion of committed capital remaining and available for investment, KNR said it has the capacity to purchase almost $2 billion of additional properties and will seek to acquire high-quality, producing assets both within and outside its core operating areas over the next few years.
“The commercialization of unconventional oil and gas reservoirs has created new opportunities to grow and develop our domestic energy resources,” said Jonathan Smidt, a head of KKR Natural Resources. “With KNR, we seek to help operators focus their capital and resources on these exciting opportunities by acquiring their non-core assets, which provides them with capital to re-invest in attractive growth opportunities.”
KNR’s existing oil and gas properties are operated by Premier Natural Resources, a Tulsa-based team that was founded in June 2006 by former executives of Vintage Petroleum. Premier currently operates a portfolio of assets in the Barnett Shale, the Texas Gulf Coast, the Permian Basin, Louisiana and Mississippi (see Daily GPI, Nov. 28, 2011).
One area of emphasis for the infrastructure fund is midstream energy. Prior to forming the fund, KKR’s infrastructure platform acquired a 23.44% stake in the Colonial Pipeline Co., the largest refined products pipeline in North America. Lat December Quicksilver Resources Inc. and KKR said they would construct and operate natural gas midstream services to support producers operating in Canada’s Horn River Basin (see Daily GPI, Dec. 28, 2011). The infrastructure fund also targets renewable energy, utilities (water, power and gas), social infrastructure and selected transportation-related infrastructure.
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