KKR targets LEC priority projects for financing

US-based global investment firm KKR & Co. Inc. has expressed interest in financing priority projects under the Luzon Economic Corridor (LEC), spanning digital finance, manufacturing, energy and other key industries.

In a statement, the Department of Finance (DOF) said it was exploring investment opportunities with KKR, although it did not specify a potential investment amount.

KKR’s priority sectors include fintech, healthcare, energy, telecommunications infrastructure and education, as well as semiconductors, advanced manufacturing, critical minerals, logistics and digital infrastructure.

“The KKR Global Institute has pushed coming into the Philippines way back. The macro circumstances were such that we felt we should get in here. This is a young country, has grown fast, and needs infrastructure and other financing to do well,” KKR partner and chair David Petraeus said.

KKR has so far invested more than $2 billion in the Philippines across digital finance, infrastructure and essential services.

Strategic reforms

Globally, the investment firm manages around $750 billion in assets across private equity, infrastructure, credit and real assets.

For its part, the DOF said the LEC has made significant progress in attracting partners to develop and strengthen artificial intelligence infrastructure, information and communications technology, and the energy industry.

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“Through strategic reforms aimed to streamline ease of doing business, we are committed to attract more partnerships to strengthen key industries and bolster our position as a top investment destination in the region,” Finance Undersecretary Ma. Angela Ignacio said.

The LEC, which spans Subic, Clark, Manila and Batangas, was formed in 2024 as a trilateral partnership among the Philippines, the United States and Japan to expand transport, energy, digital connectivity and manufacturing infrastructure across western Luzon.

The corridor now has 13 partner countries. Australia, Canada, Denmark, France, Italy, South Korea, Sweden and the United Kingdom joined in May, while Spain and the European Union formally joined in September.