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KKR & Co., a well-known private equity firm, is about to invest a large portion of its recently established USD 6.4 billion Asia-Pacific fund to the development of India's infrastructure, with an emphasis on roads, highways and renewable energy projects. After investing USD 3 billion in India's infrastructure, KKR remains committed to expanding its market share in that country, as well as South Korea, Southeast Asia, Japan, Australia, and New Zealand. The company's growing focus on India indicates its conviction in the country's economic potential and reformist policies.
KKR & Co. partner Hardik Shah emphasised the company's approach, pointing out that roughly 30% of its prior Asia fund was allocated to the infrastructure sector in India. KKR intends to stick with this strategy since it sees India as a significant market for investment potential. China's exclusion from the new fund is a reflection of KKR's choice for other economies with more future potential.
The head of KKR's global macro and asset allocation, Henry H. McVey highlighted the company's optimism regarding India's growth trend. He positioned India as one of the top investment destinations in Asia by highlighting its ability to significantly contribute to the global economy over the next five to seven years.
Beyond conventional infrastructure projects, KKR's expansion plans in India also include renewable energy initiatives. By working with the Vedanta Group, KKR hopes to make it easier for power plants to switch from coal to renewable energy. The company's dedication to spearheading India's energy revolution is demonstrated by its participation in Serentica Renewables, a decarbonization platform.
Apart from its emphasis on infrastructure, KKR is considering investments in the rapidly growing data centre industry in India. During the next five years, McVey emphasised, there will be large yearly infrastructure transfers from the government to the private sector, offering huge investment opportunities. Moreover, as demonstrated by its most recent investment in Hero Future Energies, KKR's investment approach is in line with India's expanding renewable energy sector.
KKR is well-positioned to take advantage of new prospects in India's infrastructure sector because it has a worldwide asset management business that focuses on investments connected to infrastructure and climate change. The company's significant global asset base under management is proof of its experience and performance in infrastructure projects.
KKR's investment strategies are in line with India's objective of drawing in foreign capital to support infrastructure projects and quicken economic expansion. In order to promote sustainable development and innovation in important industries, India needs to create relationships with top international investors such as KKR, as it continues to undertake reforms and cultivate a conducive investment climate.
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