NEW YORK - Global investment firm KKR has agreed to acquire a majority stake in Avantus, a leading developer of utility-scale solar and solar-plus-storage projects in the U.S. The transaction, which marks KKR's first U.S. investment from its Global Climate Strategy, was announced today. This deal will see KKR and existing investor EIG become the sole equity investors in Avantus.
Avantus, established in 2009, owns a significant pipeline, boasting 30 GWp of solar and 94 GWh of battery storage capacity. The company's projects are enough to supply clean energy to approximately 20 million people. With a strong foothold in the southwestern U.S. and California markets, Avantus has developed and sold 6.5 GWp of solar and 6.3 GWh of storage projects to date.
The transaction, which includes commitments for a development financing facility, will provide Avantus with over $1 billion in combined equity and debt. This investment aligns with the growing need for renewable energy generation and grid electrification to support an economy-wide energy transition.
KKR's commitment to Avantus also extends to creating an equity ownership program for all employees, reinforcing the belief that employee engagement is crucial for building stronger companies. KKR has a history of investing in renewable energy, with more than $15 billion deployed in the sector through its infrastructure platform.
Jefferies LLC served as the sole financial advisor to KKR, while Scotiabank advised Avantus. KKR Capital Markets and Sumitomo Mitsui (NYSE:SMFG) Banking Corporation arranged the development financing facility.
The investment is expected to accelerate Avantus's growth and support the ongoing transition to sustainable, clean energy solutions in the power sector. This move is part of a broader trend of increasing investments in renewable energy to meet global climate goals, as highlighted by BloombergNEF's Energy Transition Investment Trends 2024 report.
The information provided is based on a press release statement.
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