Keppel Secures $1.53 Billion for Its Three Funds

Singapore-headquartered asset manager and operator Keppel Ltd on Monday said that it has secured close to $1.53 billion of capital commitments from global institutional investors for its Keppel Data Centre Fund III (KDCF III), Keppel Education Asset Fund II (KEAF II) and Sustainable Urban Renewal (SUR) strategy, representing approximately $3.74 billion in Funds under Management (FUM).

Keppel’s Fund Management CEO and Chief Investment Officer Christina Tan said that the securing of about $1.53 billion in capital across the company’s flagship funds reflects the resilient demand for high-quality alternative real assets anchored to macro-trends such as climate change and energy transition, urbanisation as well as rapid digitalisation and the AI wave.

This significant milestone brings Keppel closer to their interim FUM target of $76.29 billion by 2026, with ambitions to reach around $153 billion by 2030, she said and thanked Keppel’s Limited Partners (LPs) for their trust and confidence in the company as a global asset manager and operator. “Notwithstanding the current volatile international environment, Keppel is well-positioned to offer both critical solutions that the world needs, and defensive investment products that can help to steady investors’ portfolios. We are committed to delivering strong returns to our Limited Partners leveraging Keppel’s deep operating capabilities in sustainability and connectivity solutions,” she added.

KDCF III’s First Close

Meanwhile, Keppel’s third data centre fund, KDCF III, has achieved its first close, raising approximately $580 million in initial capital commitments from various global institutional investors, the company said.

KDCF III will draw on Keppel’s deep expertise in developing and operating data centres to invest in a portfolio of sustainable, best-in-class data centres in the Asia Pacific region. It will also focus on securing pre-commitment or high leasing certainty from hyperscale customers, which would mitigate portfolio leasing risk for investors.

As part of Keppel’s integrated ecosystem, KDCF III will benefit from synergies across Keppel’s operating divisions, such as the sourcing of renewable energy and advanced cooling infrastructure, which are increasingly important to hyperscalers. KDCF III will also be able to tap on Keppel’s strong customer relationships with hyperscalers to access off-market opportunities, as well as Keppel’s proprietary assets.

KEAF II Secures $307 Million

Keppel has achieved the first close of KEAF II with approximately $307 million in committed capital. KEAF II has secured capital commitments from a returning sovereign wealth fund invested in KEAF I, as well as commitments from new LPs from the insurance, pension and endowment sectors.

The KEAF series focuses on strategic value-add investments in education-related assets and facilities, supporting early learning, K-12, higher education, tertiary education and student accommodation, with a focus on the Asia Pacific region.

Keppel has also raised $579.82 million for its SUR strategy, bringing the strategy’s cumulative FUM to approximately $3.28 billion to date. This includes the latest commitment from one of Europe’s largest pension funds, underscoring investors’ continued focus on quality sustainable urban renewal assets.

The SUR strategy will invest in value-add real estate opportunities with the goal of decarbonising the built environment, while delivering attractive risk-adjusted returns to LPs.

The strategy is currently pursuing a pipeline of investment opportunities across real estate segments including commercial, living, life sciences, hospitality and logistics in Singapore, South Korea, Japan, Australia and first-tier cities in China.