KKR closes $2.0 Billion North American Oil & Gas Fund
Investment firm, KKR, has announced the final closing of KKR Energy Income and Growth Fund I ("EIGF" or the "Fund"). EIGF (together with related co-investment vehicles) represents a $2.0 billion strategy focused primarily on investing behind the development of North American unconventional oil and gas resources.
Commenting on EIGF, Marc Lipschultz, KKR's Global Head of Energy & Infrastructure, said:
"The energy revolution has created an unprecedented opportunity set, and we are seeing many ways to partner with companies to help develop these important resources. Pursuing asset-level and structured investments, we intend to deploy creative and flexible structures that seek to best meet the needs of our partners while delivering benefits associated with real asset ownership. We appreciate the diversity and support of new and existing KKR investors."
This strategy is focused on making joint venture drilling investments, acquiring minerals and royalties, acquiring legacy producing assets and pursuing opportunistic investments associated with oil and gas resources. To date, the EIGF strategy has deployed over $350 million of equity in eight investments.
KKR has invested or committed approximately $4.3 billion to oil and gas investments since 2009 through its investment funds and vehicles spanning buy-outs, minority equity investments, joint-ventures, and various asset-level and structured investments, making KKR one of the more active private-market investors in the North American oil and gas space across this period. In 2009, KKR made its first investment in unconventional natural gas assets through its investment in East Resources, a leading resource owner in the Marcellus Shale. In 2010, KKR made its first investment in unconventional crude oil assets, through its partnership with Hilcorp Energy in the Eagle Ford Shale.
Today, the firm manages $8.7 billion in energy and infrastructure related assets. KKR's energy and infrastructure team is composed of 40 investment professionals globally, 24 of which are based in North America.