KKR has signed a definitive agreement with NextEra Energy Partners to acquire an equity interest in a newly-formed partnership with NEP that owns a geographically diverse portfolio of 10 utility-scale wind and solar projects across the United States, collectively consisting of approximately 1,192 megawatts.
“This diverse portfolio of 10 fully-operational renewable energy projects, all of which benefit from long-term contracts with investment-grade customers, is an excellent addition to our portfolio,” said Brandon Freiman, member of KKR and head of the firm’s infrastructure business in the Americas.
KKR has a track record of investing in renewable energy, with significant capital deployed in renewable assets including more than 4 gigwatts of installed renewable capacity. KKR invests in infrastructure assets on a global basis, with $12.6 billion in assets under management within its infrastructure strategy.
KKR’s investment will be in the form of an equity interest in a newly-formed structured partnership with NEP in which NEP has certain rights to acquire KKR’s interest over time at predetermined return levels between 3.5 years and 7.0 years after the formation of the partnership. KKR’s share of partnership cash flows increases to 99 percent in the event that such call options are not exercised within certain milestones.
KKR’s $900 million investment will be funded via a mix of new term loan financing and equity from its third Global Infrastructure Investors fund, which closed in September 2018 with $7.4 billion in commitments.
KKR is a global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds.
