Conference Presentation, Fireside Chat, Interview
Investing with KKR’s Tara Davies
- The infrastructure market is projected to become more competitive while expanding in breadth and depth, with corporate partnerships anticipated to remain a primary transaction sourcing focus as assets predominantly remain held by corporations.
- Public-to-private transactions are identified as a significant structural theme, evidenced by four deals executed in the past 12 months, while growth businesses without pricing power face increasing difficulty in current market conditions.
- Asset margins are predicted to face pressure from supply chain disruptions, tight labor markets, and rising costs, compelling investors to pivot toward real assets to leverage their inflation pass-through mechanics.
- Market dislocations are expected to create investing opportunities for unparalyzed investors, alongside a digital infrastructure segment that has evolved from non-existent 25 years ago to becoming the largest asset class in the flagship fund.
- Carbon neutrality targets are expected to intensify beyond simple portfolio reallocation, requiring specific operational know-how such as plastic extraction to potentially halve carbon emissions over time.
- Successful investing requires balancing aggressive capital deployment with the management of operational business levers, favoring candidates who demonstrate curiosity and self-starting capabilities.
- There is a retrospective view that infrastructure assets acquired during the 2008 credit crunch would have proven highly successful.