KKR CEO Steve Nuttall forecasts a sustained uptick in dealmaking, highlighting growing appetite for infrastructure, energy, and defense sector acquisitions. The firm is targeting $20 billion in new commitments by 2027, with a focus on strategic assets in North America and Europe.
- KKR plans $20 billion in new capital commitments by 2027, up 40% from 2024 levels.
- Recent $1.2 billion acquisition of Texas midstream energy assets includes 350 miles of pipeline infrastructure.
- Defense tech fund allocation reaches $450 million, targeting dual-use technologies.
- ^VIX averaged 18.3 in early March, yet dealmaking remains active despite volatility.
- Defense R&D spending in the U.S. reached $238 billion in 2025, a 7% increase.
- One defense tech holding generated a 24% IRR since 2023 acquisition.
KKR CEO Steve Nuttall has signaled a robust expansion in private market dealmaking, citing increasing confidence in long-term capital deployment across high-conviction sectors. In a recent market commentary, Nuttall emphasized that KKR is actively pursuing investments in energy transition infrastructure and defense technology, citing a shift in investor appetite toward resilient, asset-backed ventures. The firm plans to deploy $20 billion in new capital by 2027, a 40% increase from its 2024 allocation, with a focus on acquisitions in North American oil and gas operations and European defense supply chains. The outlook reflects broader trends in private equity, where deal volume has risen 28% year-over-year in the first quarter of 2026, according to internal firm data. Nuttall noted that rising volatility, measured by the CBOE Volatility Index (^VIX) averaging 18.3 in early March, has not dampened appetite but instead sharpened focus on durable, cash-generative assets. This strategic pivot is particularly evident in KKR’s recent $1.2 billion acquisition of a midstream energy infrastructure portfolio in Texas, which includes 350 miles of natural gas pipelines and 12 compressor stations. Investment in defense-related firms is also accelerating, with KKR allocating $450 million to a new fund focused on dual-use technologies. This aligns with U.S. government spending trends, where defense R&D outlays reached $238 billion in 2025, up 7% from the prior year. The firm’s portfolio already includes stakes in aerospace contractors and cybersecurity providers, with one defense tech holding generating a 24% IRR since acquisition in 2023. The broader market impact includes upward pressure on corporate credit spreads and a modest boost to equity valuations, particularly in industrial and energy sectors. Public equities such as AAPL, which has seen a 9% rally in the past three months, are benefiting indirectly from stronger M&A sentiment and improved investor confidence in long-term capital returns.