Redefining Energy 180. The KKR Energy formula - May25
27 snips
May 19, 2025 Emmanuel Lagarrigue, a Partner at KKR and former Group Strategy head at Schneider Electric, shares insights on navigating the evolving energy landscape. He discusses KKR's investment strategies, emphasizing their pivot towards data centers and AI to drive growth. The conversation touches on how private markets can offer more stability and the rising significance of renewables. Emmanuel also highlights the challenges of volatility in the sector, the potential of hydrogen, and the importance of differentiating valuable trends from noise.
AI Snips
Chapters
Transcript
Episode notes
KKR's Unique Energy Focus
- KKR allocates about 10% of its $700bn under management to energy infrastructure, focusing heavily on innovative energy and climate strategies.
- They invest in private, stable infrastructure assets rather than traditional toll roads or airports, often data centers and energy transition projects.
Multi-Strategy Risk Approach
- KKR structures investments across a risk-return spectrum from low-risk operating renewables to higher-risk development projects.
- This multi-strategy approach covers core, core-plus, and climate funds targeting different asset types and opportunities for balanced portfolio exposure.
Private Markets Suit Energy Transition
- Public markets struggle with volatility and risk tolerance, limiting bold energy transition investments.
- Private capital, despite higher costs, offers the stability and flexibility needed to build transformative green assets off-balance-sheet.