Macquarie Asset Management (MAM) has agreed to acquire a significant minority stake in renewables developer D E Shaw Renewables Investments (DESRI) via a number of its managed funds.
The MAM-managed funds include Macquarie Global Infrastructure Fund (MGIF), Macquarie Green Energy and Climate Opportunities Fund (MGECO) and Macquarie Energy Transition Infrastructure Fund International (METI).
DESRI develops, owns, and operates utility-scale solar, wind, and battery storage projects throughout the United States.
This investment of up to approximately $US1.725bn is intended to enable DESRI to continue its growth and enhance its market-leading position.
DESRI’s platform currently has over 6GW of gross capacity of projects in operations or under construction, 4GW of contracted pre-construction projects, and a development pipeline of over 25GW.
The company operates across all stages of a project’s life cycle, including development, construction, and operations.
Additionally, DESRI has long-term PPAs in place with a diversified base of offtakers, including corporates, utilities, and co-ops in 24 states.
The DESRI platform will complement MAM’s existing 12GW of operational project capacity.
Christopher Frost, senior managing director, Macquarie Asset Management – Real Assets, said: “We are excited to invest in DESRI, an energy transition platform of scale with a proven, highly-regarded management team and a large base of operating assets which we expect will grow over the medium term through the successful completion of late-stage projects.
“This transaction underscores MGIF’s objective of expanding our global portfolio of diversified core infrastructure assets.”
David Zwillinger, chief executive of DESRI, added: “I’m grateful to the D E Shaw group and to our remarkable DESRI team, who have enabled us to build a strong business over more than a decade.
“And I’m excited for us to build on that foundation in partnership with Macquarie, a recognized leader in renewables, to further accelerate our growth in this exciting space.”
Lazard served as financial advisor and King & Spalding served as legal advisor to MAM.
Goldman Sachs & Co. LLC served as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to DESRI.
The transaction is subject to closing conditions, including regulatory approvals.