NEW YORK (March 14): KKR & Co has amassed US$17 billion for global infrastructure bets, its largest fund dedicated to the burgeoning sector.

The private equity firm said it held a final close for the vehicle, KKR Global Infrastructure Investors IV, with backing from institutional investors including sovereign wealth funds, insurance companies, endowments, and family offices. The pool includes US$1 billion in commitments from employees and affiliates as well as the firm's own balance sheet.

Pension funds including New York State Common Retirement Fund, the Teachers' Retirement System of the City of New York and the Minnesota State Board of Investment are among the investors, according to data compiled by Bloomberg.

"Global demand for building and upgrading critical infrastructure, as well as supporting responsible energy transition and growing broadband access, requires funding far in excess of public sources, which provides a big opportunity for private capital," Brandon Freiman, head of North American infrastructure at New York-based KKR, said in an emailed statement.

The latest infrastructure vehicle, almost US$10 billion bigger than its immediate predecessor, will invest in North American and Western European countries within the Organisation for Economic Co-operation and Development.

KKR recently backed companies including beverage manufacturer Refresco Group BV, maritime leasing firm Ocean Yield, data centre operator CyrusOne Inc, energy-focused Sempra Infrastructure Partners, and Atlantic Aviation, a provider of hangar space and other aircraft services.

It is the fourth-largest infrastructure fund on record, eclipsed only by vehicles raised by Global Infrastructure Partners, Brookfield Asset Management, and EQT AB, according to data provider Preqin. GIP and Brookfield are each targeting larger funds that would set new benchmarks.

The latest fundraising "speaks to the robust opportunities that we see in this asset class", Alisa Amarosa Wood, KKR's global head of private markets and real assets product strategies, said in the statement.