Thoughts on KKR Infra?

Have seen some coverage of the KKR Infra platform on WSJ recently (raised a big APAC fund, potential PG&E spinoff, a piece about their 'growth-infra' climate mandate, etc). I know most MFs have infra groups but curious how something like KKR Infra stacks up against GIP, Stonepeak, Brookfield, etc. Also curious if anyone has insights into culture, comp, etc for US offices?

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Pretty goated. It’s sweaty because infra is inherently more nitty gritty and stressful than vanilla PE but their AUM is ridiculous (~60B). In general, infrastructure (especially digital infrastructure/energy transition) has some crazy tailwinds and is the next “hot thing” in finance, so being at a MF firm with a strong infra team is hard to beat. KKR specifically has a very broad infra/climate mandate so I imagine the work is probably more interesting than a GIP/Blackrock or Stonepeak. Personally at another MF doing tech and KKR infra is one of the only teams I’d try to lateral to that isn’t tech.

 

This is a thing across firms. Infra is very sweaty across the street and granular as hell. 

It's just simply much different than a consumer firm where you can in theory raise prices and lower expenses simply to boost the margins... infra contracts are pretty locked in and decades long. Almost all of them have government involvement which means a ton of diligence, paperwork and headache. The value add is much different. Taxes and regulatory issues are a massive part of infra.

You're also building a 30 year model on a monthly basis so the sheer amount of work involved is huge.

O&G/power IB are also sweaty for the same reasons. Houston is notorious for hours on par with the worst groups in NY. Infra is cool but it's definitely not a lifestyle group

 

Another thing to add is they run exceptionally lean (3 person deal teams at most) so the Associate experience requires you play up a ton. Not for everyone but leads to incredible experience and much broader scope than GIP/Stonepeak. KKR as a firm also has good internal capabilities (capital markets, portco ops) whereas GIP/SP require a lot of these activities from the deal teams. In terms of culture, it’s still KKR which is going to be intense but the people I’ve interacted with have been friendly / social. Not 100% on comp but read on another forum that it was in-line with GIP/SP.

 

One thing to keep in mind for long term is carry there is deal by deal allocations rather than across the fund so creates more of an eat what you kill / competitive atmosphere. Some may like it, some may not. 

 

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