KKR recently closed a $1.3 billion Global Impact Fund, and BX launched their own impact investing platform last year (https://www.blackstone.com/the-firm/press-release…). Any insights into nuances of the work experience in a MF impact arm vs their flagship funds and the general reputation of these impact funds?
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Top players in this space are: TPG Rise and Bain Cap Double Impact. BX and KKR are newer and joined the TPG/Bain bandwagon (altho KKR's impact fund is now the 2nd largest).
While these funds are certainly more ESG-friendly than their LBO counterparts, they mostly invest in profitable, attractive companies in sectors that come off as "impact" but are not necessarily so. Many investments in education and healthcare.
For example, Bain Cap's portfolio: Arosa (for-profit elder in-home care), Penn Foster (for-profit online school that has settled some minor fraud allegations), By Chloe (an expensive modern vegan restaurant). TPG's portfolio: Renaissance (for-profit edtech investment also owned by H&F and Francisco's main LBO funds), Cellulant (digital payments). All of these investments could be conceivably done through the main funds. The impact label is a bit of a stretch.
Just by looking at these investments, I imagine they do some of the same modeling as the main LBO funds. The size is smaller, capital structures are simpler (less or no debt) and diligence is probably less intense, than the main LBO funds. Which changes the work experience.
However, the risk appetite is larger, leverage is probably lower, some of these investments are in geographies that the main funds usually avoid (India, Africa) and the return expectations are lower so overall, potential to be more conscious stewards and create some impact.
rise had solid IRR, think they were vintage top quartile, maybe second
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A lot of it is a facade for investing in smaller deals as the above mentioned with lower leverage so if you're on this team, at least with someone I know who's on the Bain team, you'll be evaluating some growth - smaller buyout deals which aren't necessarily of greater impact to society
Hi there - has anyone been through a KKR impact investing interview before? Appreciate any insights as there seems to be limited info in the ww web...
Hi, did you happen to get more information on the process?
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