In a report from Bloomberg, KKR & Co LP is now raising US$1.5 billion for the establishment of fund for oil and gas development and investments. The plan was confirmed by two individuals with knowledge of the transaction who spoke on the condition of anonymity.

KKR would establish the KKR Energy Income and Growth Fund for drilling projects with the purpose of generating steady income and other distributions for its investors. The Bloomberg news report also indicated that KKR would offer a management fee discount for those investors who pledge funds during the first round of fundraising as an incentive.

Other fund investment projects are minerals and royalties as well as mezzanine debt. The main deals though for the fund are partnerships with Comstock Resources Inc, Cinco Energy Services and Raptor Petroleum LLC.