Keppel Capital, an asset management arm of Singapore-listed Keppel Corporation, has announced the launch of three funds with a total target of over $5 billion, according to its latest quarterly business update on Thursday.
The asset manager is currently raising capital from limited partners for its latest flagship fund, Keppel Core Infrastructure Fund. Launched in late 2022, the fund is targeting $2.5 billion and will focus on Asia-Pacific core infrastructure assets, including power generation and water and waste treatment infrastructure, which are developed, owned, and managed by other business units of Keppel. In addition, the fund will explore opportunities in core-plus properties, also known as operating assets, with a proven track record of resilient performance.
Meanwhile, Keppel Sustainable Urban Renewal Fund, which was also launched in 2022 with a target size of $2 billion, will aim at retrofitting and rejuvenating existing commercial buildings with sustainable urbanisation solutions.
Following the full deployment of the Keppel Asia Infrastructure Fund, Keppel Capital is looking to launch Keppel Asia Infrastructure Fund II, a second instalment of its close-ended value-add fund series under the management of its private arm Keppel Capital Alternative Asset in the near future, it said.
While the size of the fund has not been disclosed, the maiden fund secured $667 million in capital commitments in late 2021, with Asian Infrastructure Investment Bank injecting $100 million into the vehicle.
The three new funds have attracted positive interest from European and Asian investors, and Keppel will make an announcement once each fund reaches the first close, said Christina Tan, CEO of Keppel Capital, in a media briefing.
Plans for these funds are in line with Keppel’s goal to grow its current $50-billion assets under management to $200 billion by 2030 with the ambition of becoming a leading global asset manager.
“The board and management are excited about what the future holds for Keppel, as we steer the group’s transformation into a global asset manager and operator, focused on investing in and creating solutions for a sustainable future,” said Loh Chin Hua, CEO of Keppel Corporation, in a release.
Last week, DealStreetAsia reported that Alpha Investment Partners’ chief executive officer Alvin Mah had left the private fund management arm of Keppel Capital and was succeeded by Mah’s former teammate Galen Lee this month.
Keppel Capital’s listed infrastructure unit Keppel Infrastructure Trust (KIT) is set to launch an equity funding exercise to raise at least S$240 million ($179 million) via a private placement of shares and a non-renounceable preferential offering, DealStreetAsia reported last Tuesday.
Its parent company saw a 9% uptick in revenue, from S$2.1 billion in Q1 2022 to S$2.3 billion in Q1 2023. Keppel Corporation’s share price closed at S$6.41 on Monday.