The UAE-backed climate fund complex Alterra, launched with $30 billion during Cop28 and based in Abu Dhabi, has committed new funding to KKR’s Global Climate Transition Strategy.
The KKR vehicle includes among its focus sectors renewables and storage, electrification, energy efficiency, sustainable fuels, waste, and circular economy solutions, and has made seven investments to date. Geographically, the commitment will address climate and energy transition with deployment in North America, Europe, and Asia, and is drawn from Alterra's Acceleration Fund – one of three in its fund of funds model. The size remains undisclosed.
The tie-up "reflects a shared commitment to accelerating investment in the infrastructure underpinning the energy transition," Charlie Gailliot and Emmanuel Lagarrigue, Co-Heads of KKR’s Global Climate Transition Strategy said. "As energy demand continues to grow, we see a significant opportunity to invest in solutions that enhance energy security, improve affordability, and ensure reliability, while supporting decarbonization across the real economy."
'Hand in Hand'
Karim Radwan, Partner and Head of Investments at Alterra, added that the partnership demonstrates "that impact and commercial performance can go hand in hand."
"As global economies expand clean power capacity, modernize grids and electrify transport and industry, the need for large-scale, resilient infrastructure will continue to grow. Against this backdrop, we need to direct capital at scale into solutions that will enable the next phase of the global climate transition.”
KKR, which this week celebrated 50 years in business, is one the world largest private infrastructure investors, with US$100 billion in infrastructure assets under management. Since 2011, the firm says it has invested more than US$44 billion in climate and environmental sustainability investments.
For Alterra the move also follows a similar commitment made, in tandem with the IFC, to Brookfield's Catalytic Transition Fund last year.
