KKR Energy Investments Troubled by Racial Injustice and Financial Losses

The report examines KKR's energy investment strategy from 2010 to 2020, highlighting a strong preference for fossil fuels over renewables. It details significant financial losses, including negative internal rates of return (IRR) for several funds and bankruptcies of assets like Longview Power and Samson Resources. Additionally, the document links KKR's investments to environmental and social harms, specifically citing Indigenous opposition to the Coastal GasLink Pipeline in Canada and the disproportionate impact of oil and gas operations on Latino and minority communities in Texas and New Mexico.

• KKR's energy investment strategy has heavily favored fossil fuels over renewable energy. Between 2010 and 2020, approximately 73% of its energy deals were for carbon-intensive fossil fuels, while 27% were for renewables.
• Several of KKR's energy and natural resource funds have experienced significant negative returns. As of the fourth quarter of 2020, the 2010 Natural Resources fund reported a net IRR of -28.1 percent, and the 2013 Energy and Income Growth Fund I posted a -4.9 percent net IRR.
• KKR's investment in the Coastal GasLink Pipeline in Canada has faced significant opposition from Indigenous communities, specifically the Wet’suwet’en Nation, leading to protests, blockades, and cost overruns.
• KKR-owned companies have caused environmental damage on Indigenous and minority lands. Samson Resources spilled toxic water on the Southern Ute Indian Tribe Reservation in Colorado in 2015, and Spur Energy experienced nearly 20 spill incidents in early 2021 in New Mexico's Eddy and Lea counties, which have large Latino populations.
• KKR's fossil fuel assets in South Texas, specifically through Venado Oil & Gas in the Eagle Ford shale area, contribute to environmental racism, as minority neighborhoods in that region are disproportionately exposed to fracking wastewater disposal wells.
• Major fossil fuel investments by KKR have resulted in bankruptcies and substantial financial losses. Longview Power filed for bankruptcy in April 2020, extinguishing over $350 million in debt, and the leveraged buyout of Samson Resources ended in bankruptcy, wiping out KKR's 60 percent stake.

APA

Giachino, A. (2021). KKR Energy Investments Troubled by Racial Injustice and Financial Losses. Private Equity Stakeholder Project. https://pestakeholder.org/wp-content/uploads/2021/04/PESP_Report_KKR_Energy_April2021_v3-1.pdf

Chicago

Giachino, Alyssa. KKR Energy Investments Troubled by Racial Injustice and Financial Losses. Private Equity Stakeholder Project, 2021. https://pestakeholder.org/wp-content/uploads/2021/04/PESP_Report_KKR_Energy_April2021_v3-1.pdf.

Wikipedia

{{cite report |last1=Giachino |first1=Alyssa |title=KKR Energy Investments Troubled by Racial Injustice and Financial Losses |publisher=Private Equity Stakeholder Project |date=April 2021 |url=https://pestakeholder.org/wp-content/uploads/2021/04/PESP_Report_KKR_Energy_April2021_v3-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{giachino2021kkr, author = {Giachino, Alyssa}, title = {{KKR Energy Investments Troubled by Racial Injustice and Financial Losses}}, institution = {Private Equity Stakeholder Project}, year = {2021}, month = apr, url = {https://pestakeholder.org/wp-content/uploads/2021/04/PESP_Report_KKR_Energy_April2021_v3-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }