The latest in funds and investment news from across North America.

Kohlberg Kravis Roberts, or KKR, one of the big-hitters in the global private equity and alternative investments space, today said it has held the final closing of an impact investing fund, having raked in $1.3 billion for the vehicle. 

Known as KKR Global Impact, the fund’s managers seek out and put money into opportunities across the Americas, Europe and Asia. It concentrates on generating private equity risk-adjusted returns by investing in companies in the lower-middle market. Such firms must chalk up measurable progress for one or more of the United Nations Sustainable Development Goals.

The fund has been backed by new and existing investors including public pensions, family offices, high net worth individual investors and institutions.

Impact investing describes the practice of putting money to work to achieve outcomes such as reducing illiteracy, crime, pollution and other problems, while achieving a monetary return. As such, it goes beyond the idea of screening out certain “bad” investments. Debate continues on whether such investment can ultimately outperform conventional forms.

KKR said it has spotted a number of broad themes where it thinks its fund can make a difference: Mitigating and adapting to climate change; protecting clean water; learning and workforce development; responsible waste management; leveraging technology to enhance safety, mobility and sustainability; serving globally conscious consumers healthier and more sustainable products and services; and upgrading declining industry and infrastructure.

The firm launched its global impact business in 2018. Since then, its 12-person global team has executed a number of transactions, including in Barghest Building Performance, Ramky Enviro Engineers, KnowBe4, Burning Glass, and the formation of a wastewater treatment platform.

KKR will be investing more than $130 million of capital in the fund, alongside these investors, through the firm’s balance sheet and employee commitments.