Global private equity firm, KKR & Co. is buying a stake valued at SGD 45 million (USD 33 million) in Barghest Building Performance, a Singapore provider of energy saving solutions. This is part of a Series B fundraising for BBP, which helps companies throughout Asia reduce electricity consumption. The six-year-old company uses sensors, software algorithms, equipment controls and engineering design to try to cut electricity consumption in air-conditioning systems in commercial and industrial buildings, reducing electricity consumption by as much as 35%.
BBP’s existing markets include China, India and Taiwan and its client list includes U.S. computer maker HP Inc., hotelier Shangri-La Asia Ltd., retail company Dairy Farm and Changi Airport. It plans to use the funds to grow its business in the region expanding to Philippines and possibly South Korea and Japan, invest in new technology and hire more staff.
This investment is KKR’s first impact investment globally. Private equity firms such as KKR, TPG and Bain Capital LP have been pushing into impact investing, the idea of seeking both financial return and social benefit. KKR is currently raising funds for investments with this purpose as well as several other strategies.
(Sources: Barghest Building Performance; Straits Times)