Zürich, 04 September 2019 – UBS, the world's leading global wealth manager, has raised USD 225 million from its private clients for the KKR Global Impact Fund as part of a five-year plan to mobilize private wealth for public good. The sum represents one of the largest investments to date in the private equity impact investment vehicle.
The KKR Global Impact Fund invests in businesses providing commercial solutions that contribute measurable progress toward one or more of the UN SDGs. Specifically, the strategy is focused on opportunities where financial performance and societal impact are intrinsically aligned and there is no trade-off between positive impact and financial outcomes.
UBS announced a commitment to raising USD 5 billion for SDG-related impact investments over the next five years at the World Economic Forum Annual Meeting 2017 in Davos. The firm has since raised impact investments from its private clients across multiple asset classes and types of products, including UBS's groundbreaking 100% sustainable cross-asset portfolio.
KKR has built a proven model to source, diligence, and create value in companies around the world, including those companies whose core business model addresses a critical societal challenge. The KKR Global Impact team leverages this toolkit and distinguishes itself with a focus on lower middle market private equity opportunities globally, building on KKR's 10-year track record² of investing in businesses that promote sustainable development.
Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, said: "Tackling global sustainability challenges is an increasingly important investment opportunity for us and for our clients. We are delighted to work with firms who share this perspective and who can help our clients make a positive impact as well as earn a compelling return."
Christian Wiesendanger, Head of Investment Platforms and Solutions at UBS Global Wealth Management, said: "We are pleased to have partnered with KKR on its Global Impact Fund and to have raised such a large sum for this initiative. We look forward to offering further opportunities of this nature and helping clients broaden their sustainable and impact investment portfolios."
Ken Mehlman, Co-Head of KKR Global Impact, said: "We set out to create the KKR Global Impact Fund because we believe that in today’s world, investors have an imperative to create a positive impact while making a financial return. We are thrilled to see UBS and their private clients agree and that we are able to work together in achieving this shared mission."
Robert Antablin, Co-Head of KKR Global Impact, said: "With the world facing unparalleled challenges, there is significant opportunity to invest in businesses that create value by delivering commercial solutions to critical challenges. We are excited that UBS and their private clients are aligned in this objective and mission.”
UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. UBS' strategy is centered on our leading global wealth management business and our premier universal bank in Switzerland, enhanced by Asset Management and the Investment Bank. The bank focuses on businesses that have a strong competitive position in their targeted markets, are capital efficient, and have an attractive long-term structural growth or profitability outlook.
UBS is present in all major financial centers worldwide. It has offices in 50 markets, with about 31% of its employees working in the Americas, 32% in Switzerland, 19% in the rest of Europe, the Middle East and Africa and 18% in Asia Pacific. UBS Group AG employs over 67,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).
KKR is a global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR's investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at www.kkr.com and on Twitter @KKR_Co.
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As an expert in the field of sustainable finance and impact investing, I've been actively involved in tracking and analyzing developments in the global wealth management sector, particularly in the context of environmental, social, and governance (ESG) considerations. My expertise extends to understanding the intricate dynamics of private equity impact investment vehicles and their alignment with global sustainability goals.
The article discusses UBS's significant achievement in raising USD 225 million from its private clients for the KKR Global Impact Fund, marking one of the largest investments in the private equity impact investment space. This move is part of UBS's ambitious five-year plan, announced at the World Economic Forum Annual Meeting in 2017, to mobilize private wealth for public good and raise a total of USD 5 billion for Sustainable Development Goals (SDG)-related impact investments.
The KKR Global Impact Fund, highlighted in the article, is designed to invest in businesses that offer commercial solutions contributing measurable progress towards one or more of the United Nations Sustainable Development Goals (UN SDGs). Notably, the fund focuses on opportunities where financial performance and societal impact are inherently aligned, emphasizing a lack of trade-off between positive impact and financial outcomes.
The strategic approach of both UBS and KKR is noteworthy. UBS has diversified its impact investments across multiple asset classes and products, including the groundbreaking 100% sustainable cross-asset portfolio. KKR, on the other hand, leverages its proven model to source, diligence, and create value in companies worldwide, with a specific focus on the lower middle market private equity opportunities that align with sustainable development.
The statements from key figures, such as Mark Haefele (Chief Investment Officer at UBS Global Wealth Management), Christian Wiesendanger (Head of Investment Platforms and Solutions at UBS Global Wealth Management), and leaders from KKR, reflect a shared commitment to addressing global sustainability challenges through impactful investments. The emphasis on creating a positive impact while generating a financial return underscores the growing importance of sustainable finance in today's investment landscape.
In conclusion, UBS's collaboration with KKR in raising substantial funds for the Global Impact Fund showcases a commitment to integrating sustainability into wealth management practices. This initiative aligns with the broader trend of financial institutions recognizing the significance of impact investing as a viable and impactful approach to wealth management.