KKR Invests in Avantus to Support Renewable Energy Deployment in the United States

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 GW_p 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 GW_p 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.”