KKR will on Friday unveil plans to diversify into infrastructure, hiring a top Lazard executive to lead an expected $10bn fundraising, as the US buy-out group reacts to recent credit market turmoil. The shift into infrastructure is a tacit admission by KKR that it is too focused on “mega buy-outs” of large companies, which have become almost impossible as debt finance has dried up. KKR is also attempting to regain ground on its key rival Blackstone, which has moved faster from being a pure buy-out shop to becoming a diversified alternative asset manager. KKR has hired George Bilicic, former managing director at Lazard responsible for power, energy and infrastructure activities, to oversee its new infrastructure fund, and is also seeking new executives for the fund in Europe and Asia.
