 "KKR bets on industrial assets and digital infrastructure, predicting a 0 trillion investment surge by 2040 amid evolving markets.")
KKR & Co. has significantly increased its investment in digital infrastructure, focusing on assets like fiber connectivity, data centers, and logistics. According to Raj Agrawal, KKR’s global infrastructure head, industrial assets such as storage facilities are becoming crucial as Fortune 500 companies seek to sell these for better financial stability. The shift towards renewable energy and the rise in high-speed internet usage are key trends driving this growth. KKR has invested around $8 billion in infrastructure over the past year, raising its assets under management from less than $40 billion to approximately $75 billion in three years. The firm aims to attract wealthy individuals looking to diversify their investment portfolios with alternatives like infrastructure.
KKR & Co. is making waves in the infrastructure investment sector, with a spotlight on digital assets and logistics. According to Raj Agrawal, the global infrastructure head at KKR, the “next big thing” is industrial assets, particularly storage facilities and logistics. This statement came during an interview at the Barclays Global Financial Services Conference, where Agrawal emphasized the potential for Fortune 500 companies to sell off their industrial assets. By doing so, they could improve their financial standings without the burden of ownership.
As online shopping continues to grow, data centers and logistics are emerging as key areas for alternative asset managers. KKR sees this as an opportunity to tap into the increasing demand for high-speed internet and the shift towards renewable energy. The firm projects a staggering $100 trillion is needed for infrastructure investments by 2040.
In a year, KKR has significantly ramped up its investment efforts, deploying around $8 billion in various infrastructure projects, including fiber connectivity and energy transition initiatives. Their infrastructure assets have soared from under $40 billion to approximately $75 billion in just three years. This growth is partly driven by efforts to attract wealthy individuals seeking alternatives in their investment portfolios.
As KKR continues to navigate this dynamic landscape, their focus on logistics and industrial assets positions them as a key player in the evolving Market.
Tags: KKR, infrastructure investment, digital assets, logistics, data centers, renewable energy, investment trends, financial services, industrial assets, online shopping.
What is KKR’s Agrawal talking about with industrial infra?
Agrawal from KKR believes that industrial infrastructure, like factories and warehouses, will be the next big investment opportunity.
Why is industrial infrastructure considered a new asset class?
It’s seen as a new asset class because it offers good returns and is becoming more important as businesses grow and need more facilities.
What types of investments fall under industrial infrastructure?
Investments in things like logistics centers, manufacturing plants, and distribution networks are all part of this sector.
How does this focus on industrial infra affect investors?
Investors might find new opportunities to make money as demand for industrial spaces increases due to e-commerce and global supply chains.
Is KKR planning to invest more in industrial infrastructure?
Yes, KKR plans to increase its investments in industrial infrastructure, seeing it as a key area for growth and strong returns.
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