The New Zealand pension fund said it will invest up to $175m in KKR’s deals in North American natural gas exploration and production, midstream, downstream and/or energy infrastructure and services.
The remaining $75m will be invested in KKR’s $2bn Energy Income and Growth Fund, which will be focused on the development of unconventional gas and oil resources in North America.
Other NZ Super Fund investments in the energy sector include a $100m commitment to Bloom Energy, which uses solid oxide fuel cell technology to create power, and a $55m investment in wind turbine manufacturer Ogin.
NZ Super Fund general manager Matt Whineray said, “Developments in North American gas and oil are profoundly changing both global energy markets and markets within North America.
“For example, there is a large and ongoing decline in the burning of coal in the US as energy utilities transition towards gas supplies. Access to these opportunities is, however, difficult to achieve solely through listed markets. Partnering with KKR will give us the benefit of their expertise and deep relationships in the energy sector.”
In the meantime, KKR is reportedly planning to raise up to €3.5bn for its latest European investment fund.
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