Emerging Markets
KKR Targets India's Infrastructure Potential

The launch of the trust takes place on the back of growing demand to expand India’s road network, the second-largest globally, as passenger traffic and commercial vehicle traffic continue to increase.
Kohlberg
Kravis Roberts, aka KKR, has launched the Highways
Infrastructure Trust, aimed at the India market. The move is
another example of how investment firms are eyeing the
potential of the Indian economy.
The trust is the firm’s third such InvIT structure in India,
adding to the Virescent Renewable Energy Trust, India’s first
renewable energy InvIT, and India Grid Trust, a transmissions
InvIT.
Together, these platforms operate and manage 33 assets valued at
over $3.8 billion in 22 states or union territories across India,
KKR said in a statement yesterday.
HIT’s initial portfolio comprises six roads' assets with a total
length of more than 450 kilometres across six states in India.
The assets, which include a mix of toll and annuity roads, are
located in Gujarat, Madhya Pradesh, Meghalaya, Rajasthan, Tamil
Nadu, and Telangana.
In addition, HIT is considering a pipeline of acquisition
targets, including those sold through its sponsor. The platform
possesses significant growth potential and seeks to invest in
high-quality assets, including through bolt-on acquisitions.
HIT has been assigned a ‘Provisional AAA/Stable’ rating for its
loan facilities from CRISIL, S&P’s India affiliate. KKR said
the rating reflects the assets’ favourable location and
geographical diversity, as well as strong track record of
revenue.
The launch of the trust is taking place on the back of
growing demand to expand India’s road network, the second-largest
globally, as passenger traffic and commercial vehicle traffic
continue to increase, KKR said. Today, India’s road network is
responsible for 90 per cent of total passenger traffic and the
movement of almost 65 per cent of all goods across the
country.
Among others, globally, KKR’s infrastructure portfolio, which
spans sectors including transportation, renewable energy, power
and utilities, water and wastewater, and
elecommunications, manages more than $40 billion in
assets.
Within the wealth management space, in January KKR appointed
one of its senior figures as global
head of private wealth. Todd Builione oversees the firm’s
“strategic priority” of building its private wealth distribution
platform to expand access to KKR’s alternative investment
strategies for individual investors globally.