KKR Private Infrastructure (KIF) Fund (AUD)

Access a diversified range of global private infrastructure opportunities from a market leader.

Introducing KKR Private Infrastructure (KIF) Fund (AUD)

Bringing together the proven* and specialist global private infrastructure capability of KKR and its Australian investment partner, Channel Capital, the KKR Private Infrastructure (KIF) Fund (AUD) (the Fund or KIF) delivers access to an unparalleled and globally diversified portfolio of KKR private infrastructure investments.

The Fund provides a direct route for Australian eligible investors to access KKR’s global private infrastructure portfolio within a single strategy, and with immediate diversified exposure across infrastructure sectors, geographies, vintage - only previously accessible by institutional investors.

* Past performance is not a reliable indicator of future returns.

Four reasons to consider the Fund

1

Access to the potential benefits of private infrastructure

2

Open-ended fund designed for eligible individual investors

3

Single entry point to KKR's full suite of infrastructure investment strategies

4

Immediate exposure to a diversified infrastructure portfolio^**

** An investment in the Fund involves subscribing to shares of a collective investment and not of a given underlying asset.

Thematic approach to portfolio construction

KKR allocates capital across infrastructure assets and sectors using a risk-based and value creation-oriented approach, which has helped KKR identify three long-term trends that KKR believes provides a compelling opportunity today.

DIGITALISATION

Data is the fastest growing commodity in the world with global IP traffic expected to increase by 26% CAGR¹

DECARBONISATION

We believe there is tremendous opportunity to reduce the carbon intensity of traditional fossil fuel energy Infrastructure

DECONSOLIDATION

Industrials and corporates seek to create financial value and operational efficiency by divesting non-core assets

1. As of April 2020. Source: Credit Suisse Research.

Potential Benefits of Investing in Private Infrastructure

Potential for Downside Protection^*

Essential services with strong market positions may create resiliency to economic shocks.

Potential for Cash Distribution

May provide an opportunity for consistent income supported by long-term contracts or regulated revenues.

Potential for Inflation Protection^*

KKR believes infrastructure can provide a natural hedge against inflation through pricing power and contracted adjustments.

Diversification^**

Potential low correlation to traditional asset classes and complementary to other real assets.

Upside Potential

Investment opportunities in thematic trends (e.g., digitisation, decarbonisation and deconsolidation) may benefit from sustainable, long-term industry tailwinds.

There are several risks associated with investment in this the Fund. Please refer to Product Disclosure Statement for further information.
Note: Investments in Infrastructure strategies are subject to several risks and there is no guarantee that any investment program will be successful or that an investor will realise a return of invested capital. There can be no assurance investment objectives will be achieved.
* Downside protection and downside inflation protection is not a reliable indicator of protection against future losses. ** Diversification is not a reliable indicator of future returns or capital preservation.

Summary of key terms

Responsible Entity

Channel Investment Management Limited ACN 163 234 240 AFSL 439007

UNDERLYING FUND OR KIF FEEDER¹

The KIF AU Fund will invest into KKR Infrastructure Fund SICAV SA - I, being a sub-fund of the KKR Infrastructure Fund SICAV SA

Investment Objective

The KIF AU Fund seeks to obtain risk-adjusted returns, consisting of both ongoing current income and capital appreciation, by focusing on infrastructure businesses and assets, via the Underlying Fund.

UNDERLYING FUND STRUCTURE

KKR Infrastructure Fund SICAV SA: Luxembourg Part II UCI

UNDERLYING FUND FOCUS

Core, Core+ & Growth Infrastructure in OECD markets²

GEOGRAPHY

North America, Europe and Asia

INDICATIVE TARGET RETURNS³

9-11% p.a. target net return
Including 4-5% target annualised distribution, paid quarterly (where available from the Underlying Fund)

Min Investment

Direct investors: AU$500,000
Indirect Investors (via platform): refer to your platform PDS for minimum investment amounts

Valuations

Monthly NAV pricing

Applications

Monthly

Redemptions

Monthly redemptions (best endeavours). Read the KIF AU Fund PDS for further information on redemption terms.

MANAGEMENT FEE AND COSTS⁴

Class A (Standard Class): 1.71% p.a.

INDIRECT PERFORMANCE FEE⁵

12.5% of total returns, with a 100% catch-up, subject to a 5% annual hurdle amount and a high-water mark (with any positive performance being offset by negative performance in previous periods), measured and paid annually and accruing monthly.

Currency

AUD

Currency Hedging⁶

Targeting 90% hedge ratio to AUD (range of 75%-90%)

Minimum suggested investment timeframe

Five years plus

KIF Feeder has one Sub-Fund, comprising several classes (a “Class” or “Classes”) of Shares
OECD countries are defined as member countries of the Organisation for Economic Co-operation and Development.
Indicative target return for KKR Infrastructure Fund SICAV SA.
Management fees and costs includes management fee, estimated indirect costs and estimated expense recoveries. Other expenses include estimated transaction costs incurred by the Fund when buying and selling assets.
Although entitled to do so under the Constitution, the AU Fund does not intend to charge a performance fee. The AU Fund indirectly invests in interposed vehicles that may charge performance fees. Performance fees charged by interposed vehicles are deducted from the assets of the interposed vehicles as and when incurred and are therefore reflected in the KIF’s NAV and the value of the AU Fund’s investment in the KIF.
The Product Disclosure Statement (PDS) does not specify a currency hedging target range. Currency hedging decisions are made at the Underlying Fund level, beyond the control of the Fund. As such, there is no guarantee that currency hedging will be conducted within this range.

Research Ratings

The following information is only available to professional advisers. By clicking the Agree button below, you confirm that you are a professional adviser.

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The rating issued 07/2024 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2024 Lonsec. All rights reserved.

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned 2 July 2024 for the KKR Private Infrastructure (KIF) Fund (AUD)) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at https://www.zenithpartners.com.au/our-solutions/investment-research/regulatory-guidelines/.

Portfolio positioning and suitability

Private infrastructure can form part of a real asset portfolio within an alternatives allocation. It may suit investors who:

have a medium-to long term investment timeframe
are looking for consistent income and capital growth
are comfortable with the lock-up nature of private infrastructure
seek an additional source of diversification via an uncorrelated return profile
seek downside protection and a hedge against inflation
are looking to gain access to a significantly larger investable opportunity set.

What are the risks?

All investments involve risk. The key risks of investing in the Fund includes Market risk, Underlying Fund risk, Liquidity risk, Private Infrastructure investment risk and Withdrawal risk. For further information on the risks of investing in the Fund, please refer to the PDS.

Learn more about Private Infrastructure

Discover the latest insights and analysis from the KKR Global Macro and Private Infrastructure teams, including guides and papers to understand infrastructure and the role it can play in a modern-day portfolio.

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This information has been prepared for use only by wholesale clients (as defined under the Corporations Act 2001 (Cth)).

Channel Investment Management Limited ACN 163 234 240 AFSL 439007 ('CIML') is the Responsible Entity for the KKR Private Infrastructure (KIF) Fund (AUD) ARSN 673 739 430 (the 'Fund'). Channel Capital Pty Ltd ACN 162 591 568 AR No. 1274413 ('Channel') is the holding company of CIML and has been appointed as Kohlberg Kravis Roberts & Co’s ('KKR') distribution partner. Neither CIML, nor KKR, its officers, or employees make any representations or warranties, express or implied as to the accuracy, reliability or completeness of the information contained on this website and nothing contained on this website is or shall be relied upon as a promise or representation, whether as to the past or the future. Past performance is not a reliable indication of future performance.

This information is given in summary form and does not purport to be complete. The Information should not be considered advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling units in the Fund and does not take into account an investor’s particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. For further information and before investing, please read the Product Disclosure Statement and Target Market Determination for the Fund, available at www.channel-kkr.com.au.

Channel has a financial incentive to recommend KKR’s products to prospective investors, resulting in a material conflict of interest. Other potential and actual conflicts of interest which exist and/or arise from Channel's current and future business activities and relationships with KKR, its affiliates and investors (including those solicited by Channel) and portfolio companies of KKR-managed funds and accounts ('Portfolio Companies') include Channel and its personnel may from time to time invest in Portfolio Companies and/or companies that have interests different from or adverse to the Fund or other KKR clients and/or their Portfolio Companies. Channel is also entitled to be indemnified from and against any actual and direct liabilities, losses, damages, costs or expenses (including legal fees) arising out of its services, including any claims, demands, actions, suits or proceedings in which Channel may be involved, or threatened to be involved in connection with its engagement by KKR. As a result, the Fund may be required to reimburse Channel or KKR for any expenses incurred in the defence of, or in response to, any such action, although Channel’s engagement with KKR includes certain carve outs to the above indemnification and reimbursement obligations including where such losses arise solely out of our bad faith, fraud, wilful misconduct, gross negligence or a material breach of Channel's agreement with KKR. None of Channel or its affiliates, officers, employees, shareholders or agents are officers, employees, members, partners or agents of KKR, the Fund or their respective affiliates and may not be viewed as such. Channel is not an affiliate of KKR for the purposes of the U.S. Investment Advisers Act of 1940, as amended.

Wholesale, Professional Investors and Advisers only