KKR (KKR) Morgan Stanley US Financials Conference 2026 summary

Industry trends and market outlook

• Infrastructure now encompasses digital, power, social, industrial, transportation, utilities, and renewables, with a $100 trillion global need projected by 2040, driven by digital and power infrastructure.

• Institutional allocations to infrastructure have doubled in seven years, reaching record highs, with 89% of investors expecting to increase or maintain allocations in 2026 and 92% over the longer term.

• Digital infrastructure and power are seen as essential, defensive assets amid macroeconomic volatility.

• Renewables, especially solar, are increasingly attractive due to favorable entry points and growing power demand.

Investment strategy and performance

• Capital protection is prioritized, with approximately 80% of investments backed by long-term contracts or regulation, providing strong downside protection.

• Only 3 out of 60 investments were realized below cost, with a gross MOIC range of 0.7-0.9x for those cases.

• Low leverage and operational value-add strategies have delivered mid-teens returns across funds, with gross IRRs for Global Infrastructure Funds I-IV ranging from 12.4% to 19.5%.

• Fund performance has improved over time, with recent funds achieving higher returns and larger sizes.

• Average current leverage across the portfolio is 45%.

Returns and fund performance

• Asia Pacific and Core Infrastructure funds show strong gross MOICs (up to 2.1x) and IRRs (up to 28.4%).

• Average annualized yields for open-ended and core infrastructure funds range from 1.8% to 6.2%.

• Digital infrastructure investments include data centers, fiber, and wireless platforms, with gross IRRs up to 18.9%.