Transaction Marks First U.S. Investment from
KKR’s Global Climate Strategy
Today, KKR, a leading global investment firm, announced the
signing of a definitive agreement pursuant to which investment
funds and accounts managed by KKR agreed to acquire a majority
stake in Avantus, a premier U.S. developer of large utility-scale
solar and solar-plus-storage projects. Following the close of the
transaction, KKR and existing investor EIG, a leading institutional
investor in the global energy and infrastructure sectors, will be
the sole equity investors in Avantus. Both equity sponsors are
dedicated to supporting the next phase of Avantus’ growth,
including having secured commitments for a substantial development
financing facility alongside their equity commitments to the
company, totaling upwards of $1 billion in the aggregate.
Founded in 2009, Avantus supports solar and energy storage
development throughout the project lifecycle – from selecting a
project site through operations – and owns a large project pipeline
of 30 GWp of solar and 94 GWh of battery storage, enough to provide
20 million people with clean, reliable power. The company has a
substantial presence and track-record of successful development in
the southwestern U.S. and California power markets, which are among
the highest-quality markets for development in the U.S. Since its
founding, Avantus has developed and sold 6.5 GWp and 6.3 GWh of
solar and storage projects, respectively.
Avantus is poised to benefit from material secular tailwinds
supporting renewables development in the United States. According
to BloombergNEF, global energy transition investment needs to
almost triple from today’s investment levels to align with global
climate goals. Together, investment in renewable energy and power
grids is expected to continue to draw the largest share of energy
transition spending.1
“To support an economy-wide energy transition, there is a need
to significantly expand renewable energy generation by 2050 and
enable grid electrification. Because of these tailwinds, we see
enormous opportunity for Avantus. The company’s impressive team and
development track record, coupled with its mature project pipeline,
set it apart from other renewables developers,” said Charlie
Gailliot, Partner and Co-Head of Global Climate Strategy, KKR. “We
are delighted to support Avantus in realizing its full
potential.”
Cecilio Velasco, Managing Director in KKR’s Infrastructure team,
added, “We look forward to working with Avantus and EIG and
leveraging KKR’s substantial resources and operational expertise to
accelerate the growth of the business. Today marks the beginning of
a new era for the company, one that will help further the
transition of the power sector through sustainable, clean energy
solutions.”
Blair Thomas, EIG Chairman and CEO, said, “EIG has been pleased
to support Avantus since 2021, through capital solutions uniquely
tailored to the company’s needs and goals. Throughout our
partnership, Avantus has maintained and extended its position as
one of the leading and most innovative renewables developers in the
United States, helping to spur the industry’s rapid growth and
expanding access to affordable, reliable and clean energy. We are
excited to continue working with the Avantus team and are pleased
to welcome KKR as we pursue the next phases of Avantus’ growth and
evolution.”
“Solar is the fastest growing electricity source in the U.S.2,
and along with energy storage, will serve as the backbone of a
modern electric grid that is clean, reliable and resilient,” said
Patrick Goff, Chief Financial Officer at Avantus. “KKR’s investment
provides Avantus the financial backing and expertise to execute on
our ambitious portfolio and lead the energy transition across the
Western United States. We are thrilled to embark on this new
chapter with KKR and EIG and continue our company’s growth.”
Following the closing of the transaction, KKR will support
Avantus in creating an equity ownership program to provide all
employees the opportunity to participate in the benefits of
ownership of the company. This strategy is based on the belief that
employee engagement is a key driver in building stronger companies.
Since 2011, KKR portfolio companies have awarded billions of
dollars of total equity value to over 60,000 non-management
employees across more than 40 companies.
With over 15 years of experience in infrastructure investing,
KKR has deep expertise in renewable energy and climate-related
investments and has invested more than $15 billion in this sector
from its infrastructure platform alone. KKR is funding the
investment from its global climate strategy, which is dedicated to
investing in solutions at scale to support the transition to a
low-carbon economy.
Jefferies LLC acted as sole financial advisor to KKR. KKR
Capital Markets and Sumitomo Mitsui Banking Corporation (SMBC)
acted as the lead structuring agents and arrangers of a development
financing facility for the Company. Scotiabank served as financial
advisor to Avantus.
About KKR
KKR is a leading global investment firm that offers alternative
asset management as well as capital markets and insurance
solutions. KKR aims to generate attractive investment returns by
following a patient and disciplined investment approach, employing
world-class people, and supporting growth in its portfolio
companies and communities. KKR sponsors investment funds that
invest in private equity, credit and real assets and has strategic
partners that manage hedge funds. KKR’s insurance subsidiaries
offer retirement, life and reinsurance products under the
management of Global Atlantic Financial Group. References to KKR’s
investments may include the activities of its sponsored funds and
insurance subsidiaries. For additional information about KKR &
Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com.
For additional information about Global Atlantic Financial Group,
please visit Global Atlantic Financial Group’s website at
www.globalatlantic.com.
About Avantus
Avantus is shaping the future by making reliable, low-cost clean
energy a global reality. Our legacy of leadership in next
generation solar energy includes developing one of the nation’s
largest solar clusters and one of the first projects to beat fossil
fuel prices back in 2016. Today, we are expanding the boundaries of
existing technologies to build one of the largest portfolios of
solar plants with integrated storage, capable of providing 20
million people with affordable, zero-emission energy – day and
night.
For more information, please visit www.avantus.com, and follow
Avantus on LinkedIn.
About EIG
EIG is a leading institutional investor in the global energy and
infrastructure sectors with $22.9 billion under management as of
December 31, 2023. EIG specializes in private investments in energy
and energy-related infrastructure on a global basis. During its
41-year history, EIG has committed over $47.1 billion to the energy
sector through over 405 projects or companies in 42 countries on
six continents. EIG’s clients include many of the leading pension
plans, insurance companies, endowments, foundations and sovereign
wealth funds in the U.S., Asia and Europe. EIG is headquartered in
Washington, D.C. with offices in Houston, London, Sydney, Rio de
Janeiro, Hong Kong and Seoul. For additional information, please
visit EIG’s website at www.eigpartners.com.
___________________________ 1 BloombergNEF: Energy Transition
Investment Trends 2024 2 U.S. Solar Market Insight 2023 Year in
Review
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version on businesswire.com: https://www.businesswire.com/news/home/20240320421164/en/
Media: KKR Liidia Liuksila (212) 750-8300
media@kkr.com
Avantus Katie Struble press@avantus.com
EIG FGS Global Kelly Kimberly / Brandon Messina +1 212-687-8080
EIG@fgsglobal.com
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