KKR to invest $450 mn in Hero Group’s renewable energy

Global private equity (PE) major KKR will invest $450 million (₹3,585 crore), in Hero Future Energies (HFE), the renewable energy arm of the Hero Group, the companies announced.

The majority investment comes from KKR along with co-investment from parent conglomerate Hero Group, details of which along with the valuation remain undisclosed.

US-based investor KKR makes its investment from its maiden Asia Pacific Infrastructure Fund raised last year with a record $3.9 billion. It followed up this year with a $17 billion Global Infrastructure Fund, that exceeded the initial $12 billion target.

The investment in Hero Future Energies builds on KKR’s extensive experience in India and the renewables sector.

Since 2011, KKR has deployed over $15 billion in equity globally to invest in renewable assets, such as solar and wind, which have an operational power generation capacity of 23 GW, as of 31 December 2021, the company said.

KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds.

In Asia Pacific, KKR sees renewables as core to its infrastructure strategy and seeks to capture the significant opportunities across the region. In 2020, it had set up Virescent Infrastructure, a renewable energy platform to own and operate renewable assets in India.

This year, KKR launched Aster Renewable Energy, a renewables platform to develop, build and operate solar, wind, and energy storage projects in Taiwan and Vietnam, with a view to expand to other markets across the region.