Private equity giant KKR & Co. (KKR) is setting its sights on artificial intelligence (AI) data centers.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
The Wall Street investment firm has announced plans to combine its infrastructure and real estate assets that are worth a total of $157 billion. The combination comes as KKR looks to capitalize on the growing convergence between infrastructure and real estate, exemplified by the boom in data centers that run AI applications and models.
Raj Agrawal will become global head of a new business unit called “Real Assets,” adding supervision of KKR’s real estate business to his current responsibilities as global head of infrastructure. KKR says that the reorganization also reflects the fact that most companies and institutional investors treat infrastructure and real estate investing as the same strategy.
Chasing the AI Boom
The newly combined group plans to pursue and acquire logistics businesses, AI data centers, and other areas of mutual interest. KKR’s Real Assets unit will have a combined $157 billion under management globally.
KKR acquires companies, turns them around, and then sells or takes them public. The firm said it now plans to aggressively target AI data centers. The company recently took private data center owner CyrusOne and has invested in Gulf Data Hub, one of the Middle East’s largest data center firms.
KKR stock has risen 98% over the last 12 months.
Is KKR Stock a Buy?
The stock of KKR & Co. has a consensus Strong Buy rating among 13 Wall Street analysts. That rating is based on 11 Buy and two Hold recommendations issued in the last three months. The average KKR price target of $170.54 implies 3.89% upside from current levels.
