Fubon Life Insurance, the insurance unit of Taiwanese financial conglomerate Fubon Financial Holdings, has committed to invest $200 million in the flagship infrastructure fund of private equity giant KKR & Co.
In a filing with the Taiwan Stock Exchange, Fubon Financial said its insurance unit plans to invest in KKR Global Infrastructure Investors Fund IV. The proposed investment will give Fubon Life Insurance a 1.67% share in the infrastructure fund.
According to a Reuters report, KKR is seeking to raise $12 billion for the flagship global fund that will invest in infrastructure assets such as oil and gas pipeline and renewable energy projects.
Fund IV will be significantly larger than its predecessors. Fund III, Fund II, and Fund I had raised $7.4 billion, $3.1 billion, and $1 billion, respectively.
The private equity firm’s infrastructure business is led by US-based partner Raj Agrawal. Some of KKR’s recent infrastructure investments include Canadian pipeline firm Coastal GasLink and Indian power transmission company IndiGrid Trust.
KKR expects to raise over $100 billion for its multiple investment strategies in 2021-22. Of this, about $15-20 billion is to be raised for its various infrastructure funds, according to its investor day presentation in April this year.
Fubon Life Insurance, which offers life protection, savings, annuity, accident, and health insurance products to customers, is the second-largest insurer in Taiwan based on total premiums, after Cathay Life Insurance.
The Taiwanese insurer was founded in 1993 as a wholly-owned subsidiary of Fubon Financial to provide life protection, savings, annuity, accident, and health insurance products to customers.
The company has announced multiple investment commitments this year. DealStreetAsia reported in June that Fubon Life committed to invest $65 million in the latest growth fund of technology-focused PE firm Coatue Management.
In May, the insurance company also committed to invest $65 million in KKR’s flagship North America buyout fund – KKR North America Fund XIII SCSp – for an estimated 0.52% share.