The New Zealand Superannuation Fund said it would invest up
to US$250 million ($292.5m) in North American gas and oil
opportunities with US energy investment firm, KKR.
Up to US$175 million would be directed to new KKR energy
private equity investments in North American natural gas
exploration and production, NZ Super Fund said in a
The remaining US$75 million would be invested with the $2
billion KKR Energy Income and Growth Fund, a new KKR fund
focused on investing in the development of unconventional gas
and oil resources in North America.
The NZ Super Fund's other energy sector investments over the
past 12 months have included US$100m in Bloom Energy, which
uses solid oxide fuel cell technology to create power, and
US$55m in wind turbine maker, Ogin.
The investments follow extensive research into opportunities
in the energy sector by the Fund over the past couple of
years, NZ Super Fund said.
"These new investments will broaden and diversify the Fund's
current exposure to energy, in line with what is a changing
global energy sector," the fund's general manager
investments, Matt Whineray, said.
Whineray said the KKR investment was premised on attractive
long-term returns in energy and significant market changes
including the rapid development of natural gas and
unconventional oil assets.
Developments in North American gas and oil are profoundly
changing both global energy markets, Whineray said.
"For example, there is a large and ongoing decline in the
burning of coal in the US as energy utilities transition
towards gas supplies," he said.
Access to these opportunities is, however, difficult to
achieve solely through listed markets.
"Partnering with KKR will give us the benefit of their
expertise and deep relationships in the energy sector," he
KKR has been investing in the energy sector for more than 20
years and its global energy business covers the full energy
This is the NZ Super Fund's third investment with KKR. It
also has investments in other KKR funds, including KKR Asian
Fund and KKR 2006 Fund.
The $25 billion New Zealand Superannuation Fund invests
globally in order to help pre-fund New Zealanders' future
Founded in 1976 and led by Henry Kravis and George Roberts,
KKR is a leading global investment firm with $94.3 billion in
assets under management.
- Jamie Gray, APNZ business reporter