Global private equity firm KKR and Canadian pension fund Ontario Teachers' Pension Plan have announced a combined investment of approx. Rs 5,500 crore in Highways Infrastructure Trust (HIT), an infrastructure investment trust which owns and operates highway projects in India.

KKR, the sponsor of HIT, will contribute Rs 3,756 crore through its investment arm, Nebula Asia Holdings II, while Ontario Teachers', a significant shareholder, will invest Rs 1,695 crore. The funds will primarily support HIT’s acquisition of new road assets, further expanding its portfolio.

Last year, HIT entered into a significant agreement to acquire 12 road assets from PNC Infratech and its subsidiary PNC Infra Holdings for Rs 9,006 crore.

KKR’s involvement in India’s road infrastructure sector began in 2021 with the acquisition of Highway Concessions One (HC1) and seven highway assets from Global Infrastructure Partners (GIP), spanning a total length of 487 km. Additionally, KKR acquired the Navayuga Udupi Tollway, a toll road project operated by the Hyderabad-based Navayuga group, for an enterprise value of Rs 924 crore. KKR had set up its InvIT - Highways Infrastructure Trust (HIT) in 2022. Over the years, HIT portfolio has grown to to 15 assets, spanning around 3580 lane km across nine states in India.

Canadian pension fund CDPQ, a leading infrastructure investor in India, is in early talks with institutional investors to raise capital for its infrastructure trust in India - Maple Infrastructure Trust, and plans to raise USD 300-400 million in the latest round of fundraising.