Keppel raises $6.3b in 2025 for private funds

The total includes about $907m in new commitments for KEAF II and KDCF III.

Keppel Ltd. has raised $6.3b in funds under management (FUM) so far this year, driven by strong investor demand for its private funds in data centres, education assets and sustainable urban renewal.

The total includes about $907m (US$700m) in new commitments for Keppel Education Asset Fund II (KEAF II) and Keppel Data Centre Fund III (KDCF III), adding roughly $2.3b in new FUM.

KEAF II secured an additional $646m (US$500m) from one of Europe’s largest pension funds, following its first close in April 2025. This brings its total capital raised to over $2.6b (US$800m) in FUM.

The fund, Keppel’s second in the education asset series, targets investments across early learning, K-12, higher education, tertiary education, and student accommodation in Asia Pacific.

Its first deal is an 80% stake in a purpose-built student accommodation facility in Auckland, New Zealand — set to be the country’s largest with 960 self-contained studios under a long-term lease to the University of Auckland. The US$3b investment pipeline also includes assets in Australia, Japan, Singapore, and South Korea.

KEAF I, its predecessor, achieved over 40% average value uplift across assets in Japan and Singapore, generating stable cash flows through long leases and asset enhancements.

Keppel’s third data centre fund, KDCF III, has raised an additional $261m (US$200m), bringing total capital to nearly US$800m and total FUM above $2.6b.

The fund invests in sustainable, high-specification data centres across Asia Pacific, targeting pre-committed or high-lease-certainty deals with hyperscale customers.

Leveraging Keppel’s integrated ecosystem, KDCF III gains advantages in renewable energy sourcing, advanced cooling technologies, and access to off-market opportunities via its long-standing hyperscaler relationships.

Keppel said the fundraising will not materially affect its earnings per share or net tangible assets for the current financial year.