K
KR is consolidating its real estate and infrastructure businesses under a single umbrella, according to an investor letter cited by Bloomberg. The move will see Raj Agrawal, global head of infrastructure, take on the role of global head of real assets, overseeing both areas. Ralph Rosenberg, current global head of real estate, will become chair of real assets, but the infrastructure business will not report directly to him.

    The combined real assets platform will manage $157 billion in assets, including equity and credit. The infrastructure segment has been KKR's top performer, returning 18% over the past year, while the real estate segment returned just 3%. Despite this disparity, both segments are seeing promising opportunities, particularly in data centers driven by the artificial intelligence boom.

    The combined business will focus on data centers, logistics properties, and other areas of mutual interest. This strategy is already being put into practice, as KKR recently purchased a distribution warehouse in Northeast Philadelphia for $83.5 million. As the demand for data centers continues to grow, assets in both real estate and infrastructure are becoming increasingly valuable.