Investment firm KKR has acquired a majority stake in US solar and storage developer Avantus.
Coinciding with the close of the transaction, Avantus has secured a US$522m development facility arranged by KKR Capital Markets and Sumitomo Mitsui Banking Corporation (SMBC).
The facility provides Avantus the financial backing to fuel the company’s growth and execute on its development portfolio, which now spans more than 30GW of solar and 94GWh of energy storage across the Western United States.
Managing director in KKR’s Infrastructure team Cecilio Velasco said: “There is enormous opportunity ahead for Avantus, and we look forward to supporting the company in this next phase of growth.
“The need for clean energy in the United States is increasing substantially, driven by many factors including data centre demand, the rise of artificial intelligence, and growth in electrification. Avantus is well-positioned to capitalize on these tailwinds.”
KKR is participating in the facility through vehicles and accounts managed by KKR’s insurance business.
The proceeds will be used to accelerate the build-out of Avantus’ pipeline and fund key activities, including security postings for power purchase agreements (PPAs), interconnection agreements and procurement deposits.
Avantus chief operating officer Stephanie Perry said: “This announcement is a ringing endorsement of our proven team at Avantus, providing us the capital to advance our portfolio and develop high-performing, high-value clean energy projects.
“We are excited to work with KKR and our existing investor EIG to achieve our growth plans and build on our track record of delivering record-breaking clean energy solutions that will decarbonize our planet at scale.”
In March, KKR announced it had agreed to acquire a majority interest in Avantus. With the close of the transaction, KKR and EIG, a leading institutional investor in the global energy and infrastructure sectors, are the sole equity investors in Avantus.