KKR has agreed to invest $40 million in United Envirotech, a Chinese water treatment and recycling solution provider. KKR subscribed $113.8 million convertible bonds issued by the company in 2011 to support its business expansion. UEL provides engineering services using membrane technology to municipal and industrial waste water treatment projects, and also operates a portfolio of waste water treatment plants across China. The added capital will position UEL to grow and scale the company in China's growing water treatment space. The transaction is expected to conclude by March 2013.