DIF Capital Partners acquires 203MW wind portfolio in the US

DIF

DIF Infrastructure Fund V (“DIF”) is pleased to announce financial close of the 100% acquisition of MIC Renewable Energy Holdings LLC’s indirect interest in two operating wind projects located in the United States with a gross capacity of 203MW.

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Idaho Wind Partners (Idaho) and Brahms Wind (New Mexico) have been operational since 2011 and 2014, respectively. Both projects have long-term power purchase agreements with investment grade off-takers. The projects will be operated and managed by Longroad Energy Services under asset management and operations & maintenance agreements.

This investment fits well within DIF’s mandate to acquire infrastructure and renewable energy assets and adds to DIF’s existing portfolio of renewable energy assets in the United States.

Paul Huebener, Partner and DIF’s Head of Americas added: “We are pleased to add these established wind projects to our portfolio of long-term, contracted assets. We believe the projects will provide attractive returns and stable cash flows to our investors.”

About DIF Capital Partners

DIF Capital Partners is an independent infrastructure fund manager, with €5.6 billion of assets under management across seven closed-end infrastructure funds and several co-investment vehicles. DIF invests in greenfield and brownfield infrastructure assets located primarily in Europe, North America and Australasia through two complementary strategies:

  • DIF Infrastructure V targets equity investments in public-private partnerships (PPP/PFI/P3), concessions, regulated assets and renewable energy projects with long-term contracted or regulated income streams that generate stable and predictable cash flows.
  • DIF Core Infrastructure Fund I targets equity investments in small to mid-sized infrastructure assets in the energy, transportation and telecom sectors with mid-term contracted income streams that generate stable and predictable cash flows.

DIF has a team of over 125 professionals, based in nine offices located in Schiphol (the Netherlands), Frankfurt, London, Luxembourg, Madrid, Paris, Santiago, Sydney and Toronto. Please visit www.dif.eu for further information.

Contact:
Thijs Verburg, Director
Email: t.verburg@dif.eu

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Ardian infrastructure acquires stake in Hill Top Energy Center

Ardian

Ardian Infrastructure joins funds managed by Ares Management Corporation and Menora Mivtachim Insurance in financing 620 MW natural gas-fired power plant project

New York, July 8, 2019: Ardian, a world-leading private investment house, today announces they have agreed to purchase 41.9% of the Hill Top Energy Center in Green County, PA from funds managed by the Infrastructure and Power Strategy of Ares Management Corporation (NYSE: ARES). Menora Mivtachim Insurance is the third partner in the deal.

When construction is complete in mid-2021, the 620-megawatt natural gas-fired Hill Top Energy Center (“Hill Top”), will sell capacity and energy to the Pennsylvania-Jersey-Maryland (PJM) regional transmission organization, the largest competitive power market in the United States. PJM serves all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia.

“We are excited to make an investment in this state of the art project,“ said Ardian Infrastructure US co-head Mark Voccola about the combined-cycle plant project. “We are thrilled to be working with an experienced management team alongside experienced investors, Ares and Menora Mivtachim Insurance, on this transaction, which will bring efficient, low-cost, natural-gas fired power to a vital energy market.”

“We are pleased to have Ardian join the Hill Top partnership, which represents the latest example of Ares’ value-added approach to clean, efficient energy infrastructure development,” said Andrew Schroeder, Partner within the Infrastructure and Power Strategy of Ares Management.

Kiewit Power Constructors will serve as the engineering, construction and procurement contractor on the project. Gas turbines, steam turbines and heat recovery generators will be provided by GE Power. Hill Top Energy Center is expected to come online for electricity production in 2021.

“The Hill Top investment continues our approach of identifying and investing in essential U.S. infrastructure assets that serve both our investors and the community at large,” continued Mr. Voccola. “This state-of-the-art plant will replace aging, inefficient energy generation, and will provide long-term, cleaner-burning, low-cost energy.”

ABOUT ARES MANAGEMENT

Ares Management Corporation is a publicly traded, leading global alternative asset manager with approximately $137 billion of assets under management as of March 31, 2019 and 19 offices in the United States, Europe, Asia and Australia. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its three distinct but complementary investment groups in Credit, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole. For more information, visit
The Ares Infrastructure and Power strategy has a 31-year track record of investing in assets and companies in the power generation, transmission and midstream energy sectors. Ares Infrastructure and Power has deep domain expertise based on approximately $8 billion of capital deployed across more than 140 transactions. These investments include roughly 40 GW of capacity, 1,000 miles of pipelines and 20,000 MMBtu/day of renewable natural gas. The group creates value and enhances returns by providing flexible capital solutions and investing across the asset life cycle, including development, construction and operations. During the last 15 years, Ares Infrastructure and Power funds have invested in nearly 10,000 megawatts of greenfield generation and transmission projects, as well as over 200 miles of greenfield pipeline projects, representing over $12 billion of capital costs.

ABOUT ARDIAN

Ardian is a world-leading private investment house with assets of US$90bn managed or advised in Europe, the Americas and Asia. The company is majority-owned by its employees. It keeps entrepreneurship at its heart and focuses on delivering excellent investment performance to its global investor base. Through its commitment to shared outcomes for all stakeholders, Ardian’s activities fuel individual, corporate and economic growth around the world. Holding close its core values of excellence, loyalty and entrepreneurship, Ardian maintains a truly global network, with more than 610 employees working from fifteen offices across Europe (Frankfurt, Jersey, London, Luxembourg, Madrid, Milan, Paris and Zurich), the Americas (New York, San Francisco and Santiago) and Asia (Beijing, Singapore, Tokyo and Seoul). It manages funds on behalf of around 880 clients through five pillars of investment expertise: Funds of Funds, Direct Funds, Infrastructure, Real Estate and Private Debt.

Ardian on Twitter @Ardian

PRESS CONTACTS

ARDIAN US
The Neibart Group
Charlie Mathon
cmathon@neibartgroup.com
Tel +1 718 801 8824
Cell +1 508 614 0667
ARES MANAGEMENT CORPORATION
Media:
Mendel Communications
Bill Mendel
bill@mendelcommunications.com
Tel +1 212-397-1030

Investors:
Carl Drake
cdrake@aresmgmt.com
Tel +1 800-340-6597

Priscila Roney
proney@aresmgmt.com
Tel +1 212-808-1185

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InfraRed backed Statera Energy enters into strategic partnership with Statkraft to faciliate low carbon transition in the UK

InfraRed Capital Partners

InfraRed Capital Partners (“InfraRed”) is pleased to announce that Statera Energy (“Statera”), the UK’s leading developer, owner and operator of flexible infrastructure, has entered into a 15-year strategic partnership with Statkraft to realise a 1 GW portfolio of utility scale flexible generation and energy storage projects.

Statera Energy will provide one of the UK’s largest battery facilities to store renewable energy at times of excess production. Statera will also deliver high efficiency gas reciprocating engines to flexibly generate electricity at times of under-production or peak demand. The assets will complement Statkraft’s 3.8 GW UK renewable generation portfolio, contributing to a reduction in conventional, less flexible, fossil fuel generation and carbon emissions in the UK’s electricity system.

Statera, backed by global investment manager InfraRed Capital Partners, will continue to develop, build, own and operate its flexible gas generation and energy storage portfolio throughout the partnership. As new assets come online, they will be integrated into Statkraft’s virtual power plant and advanced trading platform.  Statkraft will provide market optimisation, trading and risk management services to the assets.

Statkraft, strives to be a leading route-market-services provider to ensure a secure, renewable and cost-efficient electricity system of the future. Flexible power generation will continue to form an essential part of enabling the viability of renewables in the coming decades, at the lowest cost to consumers.

Duncan Dale, head of Statkraft’s markets business in UK, said:

“Statkraft recognises the importance of flexible power generation for the provision of secure energy supply in the years to come until multi-day mass energy storage becomes economically viable. It is vital that any new generation capacity is highly efficient and ultra-flexible, like Statera’s.

We have partnered with Statera because of their project development approach and relentless optimisation of the project design and operations. Everything about these projects suggests that new efficiencies can be made, which means lower carbon emissions and lower costs to the consumer. The energy market and the UK’s transition to a low carbon future should benefit greatly from unlocking this potential.”

Tom Vernon, Managing Director of Statera Energy, said:

“Statera is excited to be able to continue to deliver best-in-class energy storage and highly flexible and efficient gas generation to the renewable energy market in the UK. We intend to do our part to support security of supply and facilitate the low carbon transition enabling a more renewable future.

We have partnered with Statkraft because of its industry-leading trading capabilities and innovative approach to the future energy market. The UK generation mix and electricity market design will continue to evolve rapidly in the coming years, becoming increasingly volatile and challenging to trade. Statkraft will optimise the increasing dependence that its renewable portfolio has on flexible generation and storage, to help balance the electricity system using Statera’s assets for the next 15 years.”

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Gimv invests in German energy storage specialist Smart Battery Solutions

GIMV

28/05/2019 – 07:30 | Portfolio

Gimv has acquired a majority stake in Smart Battery Solutions GmbH (SBS) based in Kleinostheim near Frankfurt. With Gimv’s support, the company aims to continue its strong growth path in the highly dynamic battery market, to increase its workforce, and to expand its production capacity.

Smart Battery Solutions (https://smart-battery-solutions.de/) was founded in 2010 by four industry experts and today employs 50 people. The company develops, manufactures and sells lithium-ion battery systems in the low voltage segment up to 60 volts. The product range covers the entire value chain, from the customer-specific assembly of externally produced batteries to the development and production of intelligent energy storage systems and charging technologies. SBS has also developed a number of proprietary battery management systems that control the operation and safe usage of battery systems.

Smart Battery Solutions’ product range is used in a variety of eMobility applications, including e-bikes, e-scooters, watercraft and drones. Furthermore, the company’s products can be found in stationary solutions such as constant power supply devices. The company’s strength lies in its ability to adjust quickly to individual customer and application-specific requirements with regard to form and features of the respective battery pack.

Last year, the Financial Times listed SBS among the 1,000 companies from 31 European countries with the highest annual sales growth between 2013 and 2016. Focus Money magazine ranked SBS as the number one company in its sector in 2018 for German growth champions.

Ronald Bartel, Partner, responsible for Gimv’s Smart Industries platform in the DACH region, says: “We are pleased to support Smart Battery Solutions and its founding team on their ambitious growth trajectory. The company operates in a highly dynamic market environment with strong demand. SBS is known by its customers for its agility, flexibility, and high degree of technological competence to meet even the most complex customer requirements. The company is an excellent fit for our Smart Industries platform, in which we aim to support technology-oriented companies with above-average growth ambitions to develop into market-leading positions in their niches.

The founders and senior managers of Smart Battery Solutions add:Gimv is the ideal partner for us to support our growth plans in the future. Gimv will not just provide growth capital, but also its wide experience in accompanying technology companies in expansion. Together with Gimv, we will identify further solutions for new battery applications, establish new customer groups, as well as sales channels in other European countries. We are keen to stay at the forefront of the fast-growing battery market with our Made in Germany products.”

No further financial details will be disclosed.

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Navigant and InfraRed Capital Partners launch Compass Energy Platform to streamline distributed energy infrastructure projects

InfraRed Capital Partners

InfraRed Capital Partners (“InfraRed”), in collaboration with Navigant (NYSE: NCI), is pleased to announce the launch of Compass Energy Platform LCC (“Compass”), a joint venture that provides an innovative platform to help cities and utilities develop and finance local energy infrastructure solutions.

Compass brings together the combined expertise of a diverse set of energy infrastructure project experts in one platform. Navigant’s Energy segment contributes its deep industry insight and experience, while InfraRed brings its energy project structuring and development expertise as well as funding for Compass’ future pipeline of projects.

Compass leverages a public-private partnership financing model to assist clients in the development of energy resources. This includes access to expert engineering and construction service providers that can improve the delivery and efficiency of local energy services to communities and businesses. Resources also include the use of distributed generation technologies, such as solar, wind, and batteries, combined with smart asset networks, such as microgrids and district heating and cooling systems.

“Compass seamlessly integrates all aspects of a local energy project, aligning local government, businesses, investors, engineering and construction firms, and other stakeholders to deliver highly efficient infrastructure solutions,” said Thomas Buss, director at InfraRed Capital Partners.

Jan Vrins, leader of Navigant’s global Energy segment, commented “As we build the energy system of the future, local governments and utilities are increasingly focused on promoting sustainable, distributed energy infrastructure projects that increase resiliency and the security of supply. While these projects can be complex and carry risk, Compass simplifies this process by delivering end-to-end program management, project structuring and development and access to financing resources.”

Rick Bolton, CEO of Compass and director of new projects within Navigant’s global Energy segment, said “Compass works to create more resilient economies and communities, while also streamlining the process for the many stakeholders involved in implementing local energy infrastructure projects. From start to finish, Compass helps to mitigate risk by assisting the client in its selection of the appropriate business and commercial models and partnerships for the project.”

In addition to its strategic relationships with Navigant and InfraRed, Compass has a growing list of relationships with implementation service providers, creating a complete energy development platform. Compass’ implementation relationship partners include Burns Engineering (engineering), PowerSecure (microgrid development, operation, and maintenance), Concord Engineering (engineering), WXY Studio (urban planning), Greener by Design (stakeholder engagement), and Advanced Energy Agency (stakeholder engagement logistics).

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KKR and Western Natural Resources Form Partnership to Pursue Oil and Gas Investments in Williston Basin

KKR

HOUSTON & OKLAHOMA CITY–(BUSINESS WIRE)–May 20, 2019– KKR, a leading global investment firm, and Western Natural Resources, LLC (“Western”) today announced a new partnership to acquire producing and undeveloped oil and gas assets in the Williston Basin.

The Williston Basin includes meaningful existing production and high quality, well-defined remaining drilling inventory well suited to KKR’s Energy Real Assets strategy, which prioritizes the generation of free cash flow and strong asset level returns in the upstream oil and gas sector.

Western’s CEO Heath Mireles and his team bring extensive operating experience to the partnership, having drilled, completed and operated thousands of wells over the Williston Basin’s long history. The Western team will leverage their collective experiences from time spent at large public operators as well as other private companies to acquire, manage and develop producing wells and drilling locations throughout the play.

Ben Conner, Director on KKR’s Energy Real Assets team, said, “The Williston continues to be a core area of focus for us as we see a significant opportunity to acquire high quality producing assets with attractive long-term value creation opportunities to be delivered through superior technical and operational execution. We have known Heath and members of his team for years and believe our partnership is well positioned to acquire and manage assets in the Williston for the long run.”

Heath Mireles, CEO of Western added, “We are excited to partner with KKR and bring what we feel is a differentiated view and business model to the basin to build a premier asset base focused on delivering strong risk-adjusted returns.”

KKR is making its investment in the partnership through funds affiliated with KKR’s Energy Real Assets strategy, which has invested approximately $4.0 billion in capital across 12 transactions since 2015 and manages a portfolio of oil and gas assets in numerous unconventional and conventional resource areas across the United States.

About KKR

KKR is a leading 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. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE:KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About Western

Western is a private company focused on the acquisition and exploitation of upstream oil and gas assets. Headquartered in Oklahoma City, Oklahoma, its primary objective is to build and operate a large-scale portfolio of producing oil and gas wells and drilling locations in the Williston Basin. For additional information about Western, please visit Western’s website at www.wnrllc.com.

Source: KKR

Media:
Kristi Huller or Cara Major, + 1-212-750-8300
media@kkr.com

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EQT sells Coromatic to E.ON

eqt

  • EQT sells Coromatic, a leading Nordic critical facility services and provider, to E.ON, a European leader within energy networks and state-of-the-art customer solutions
  • During EQT’s ownership, Coromatic has transformed into a leading Nordic provider of critical facility services and solutions, securing operations against disruptions 24/7, ultimately improving people’s lives and protecting the environment through optimized energy consumption
  • Coromatic has more than doubled revenues and the number employees, and nearly quadrupled EBITDA as a result of strong organic growth and a number of strategic add-on acquisitions

EQT Expansion Capital II (“EQT”) has entered into a definitive agreement to sell Coromatic Group (“Coromatic” or the “Company”) to E.ON. Coromatic secures access to power and data communication by providing services and solutions to critical facilities, such as data centers, airports, hospitals, transportation and connected workplaces.

During EQT’s ownership, Coromatic has transformed from a Swedish-focused data center solutions provider into a service-led Nordic leader. Through the most extensive pan-Nordic critical facilities service network of more than 200 highly qualified technicians, Coromatic secures operations 24/7, contributing to sustainable cities and communities.

An increase in frequency of disruption events, such as power outages or disruptions in digital infrastructure, coupled with a rising cost of downtime, has led to a surge in demand for Coromatic’s unique competencies. The Company’s development has relied on strong organic growth and an ambitious consolidation strategy, having executed eight add-on acquisitions across the Nordics. Today, Coromatic supports over 5,000 customers, including 60% of the Nordic top 100 companies, out of 17 locations.

Erik Bertman, CEO of Coromatic, said: “Together with EQT, Coromatic has transformed into a Nordic leader, through geographical expansion as well as building competencies and widening the offering. Most importantly, this has allowed us to serve our customers better and faster. We now look forward to continue our ambitious growth journey together with E.ON, pursuing a bold ambition of becoming the frontrunner of the decentralized energy market in Europe. We see this as an ideal fit with a common purpose of securing operations 24/7 through energy efficient solutions and thereby improving people’s lives.”

“Acquiring Coromatic is an important step towards our strategic ambition of becoming a leading energy solutions company. As artificial intelligence, smart homes and buildings become increasingly prevalent, the need for 24/7 uninterrupted power supply will continue to grow. I see a great potential for both E.ON and Coromatic to jointly capitalize on this trend”, says Marc Hoffmann, CEO E.ON Sverige.

Victor Englesson, Partner at EQT Partners and Investment Advisor to EQT Expansion Capital II, added: “EQT is impressed with Coromatic’s growth journey, but more importantly, its contribution to society in securing critical infrastructure. This aligns perfectly with EQT’s investment approach and focus on sustainability and positive social impact. We are convinced that E.ON will be a great owner of Coromatic and together they will become a trusted partner to businesses looking to ensure their operations 24/7.”

The transaction is subject to approval from the relevant authorities and is expected to close in late Q2 or Q3 2019.

Nordea acted as financial advisor and Roschier as legal advisor to EQT.

Contact
Victor Englesson, Partner at EQT Partners and Investment Advisor to EQT Expansion Capital II
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

About EQT
EQT is a leading investment firm with more than EUR 61 billion in raised capital across 29 funds and around EUR 40 billion in assets under management. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 19 billion and approximately 110,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

More info: www.eqtpartners.com

About E.ON
E.ON Sverige is part of the international E.ON-group, one of the world’s largest investor owned energy companies. E.ON has about 2 200 coworkers in Sweden.

More info: www.eon.com/en

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Platinum Equity to Sell Artesyn’s Embedded Power Business to Advanced Energy

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Platinum

Partial Divestiture Separates Artesyn’s Embedded Power, Embedded Computing and Consumer Products Businesses

LOS ANGELES (May 15, 2019) – Platinum Equity announced today the signing of a definitive agreement to sell the Embedded Power business of portfolio company Artesyn Embedded Technologies, Inc., to Advanced Energy Industries, Inc. (Nasdaq: AEIS), in a transaction valued at approximately $400 million. The transaction is expected to close during the second half of 2019, subject to regulatory approval and other customary closing conditions.

Artesyn Embedded Technologies has been a portfolio company of Platinum Equity since 2013.

Artesyn’s Embedded Power business is a leading global supplier and manufacturer of highly engineered power conversion products, including AC-DC power supplies, DC input devices and board mounted DC-DC modules.

“The Embedded Power business and Advanced Energy are a great strategic fit with complementary strengths,” said Platinum Equity Partner Jacob Kotzubei. “We are pleased to have found a combination that makes great sense for both companies and their customers.”

“The Embedded Power business and Advanced Energy are a great strategic fit with complementary strengths,” said Platinum Equity Partner Jacob Kotzubei. “We are pleased to have found a combination that makes great sense for both companies and their customers.”The transaction announced today only involves Artesyn’s Embedded Power business, which includes the Artesyn and Astec brands. Artesyn’s Embedded Computing and Consumer products businesses are not part of the sale and remain part of Platinum Equity’s portfolio.

Mr. Kotzubei said separating the three businesses makes the most long-term sense.

“Artesyn serves three very different markets, each with its own customer base and unique dynamics,” explained Mr. Kotzubei. “Separating them into standalone operations opens up more opportunities with greater potential.”

Artesyn’s Embedded Power business is one of the world’s largest providers of highly engineered, application-specific power supplies for demanding applications. As a trusted technology partner to original equipment manufacturers, it serves multiple attractive growth markets, including hyperscale data centers, telecom infrastructure in next generation 5G networks, embedded industrial power applications and medical power for diagnostic and treatment applications.

JP Morgan is serving as primary financial advisor to Artesyn on the sale of the Embedded Power business. Morgan Stanley is also providing financial advisory services to the company. Morgan, Lewis & Bockius LLP and Baker & McKenzie LLP are serving as Artesyn’s legal counsel on the transaction.

About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $13 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 23 years Platinum Equity has completed more than 250 acquisitions.

Investor Relations
and Media Contacts:

Mark Barnhill
Partner
+1 310.228.9514 E-mail Mark

Dan Whelan
Principal
+1 310.282.9202

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KKR and Spur Energy Partners Form Partnership to Pursue Oil and Gas Opportunities

KKR

New Partnership to Acquire Permian Northwest Shelf Assets

HOUSTON–(BUSINESS WIRE)–May 14, 2019– Spur Energy Partners LLC (“Spur”) and KKR, a leading global investment firm, today announced the formation of a partnership to acquire large, high-margin oil and gas production and development assets across the Lower 48. The companies also announced the signing of a definitive agreement to acquire the Permian Northwest Shelf assets of Percussion Petroleum LLC.

The acquisition includes interests in approximately 380 gross producing wells and 22,000 net acres situated in the core of the Yeso formation in Eddy & Lea Counties, New Mexico, as well as associated water and midstream assets. During the first quarter of 2019, the assets produced approximately 9,200 net barrels of oil equivalent per day (85% liquids). The acquisition is expected to close in the second quarter of 2019, subject to customary closing conditions.

Spur is led by CEO Jay Graham, co-founder and former CEO of WildHorse Resource Development Corporation (“WRD”), along with a core team of executives and key technical personnel from WRD who have worked together for many years through multiple successful upstream oil and gas ventures. Spur intends to apply its proven expertise to acquire and enhance assets across the Lower 48 by combining strong commercial capabilities with a focus on operational efficiency and technical execution.

Jay Graham, Spur CEO, said, “Given their long-term approach and commitment to investing in scaled, cash flowing E&P assets with growth potential, KKR is the ideal partner for Spur as we look to build a large scale business in the oil and gas sector that creates value through exceptional technical and operational execution. We look forward to working together as we make our first investment in this high-quality asset with a strong existing production base and attractive development potential.”

Dash Lane, Managing Director on KKR’s Energy Real Assets team, commented, “This acquisition is the first step in what we expect to be a multi-billion dollar investment partnership with Spur, which we believe is well-positioned to create significant value in today’s oil and gas market. We have known the Spur team for many years, have seen firsthand their commercial and operational expertise, and are thrilled to be partnering with Jay and his team.”

The Spur and KKR partnership will be funded by funds affiliated with KKR’s Energy Real Assets strategy, which has invested approximately $4.0 billion in capital across 12 transactions since 2015 and manages a portfolio of oil and gas assets in numerous unconventional and conventional resource areas across the United States.

About Spur Energy Partners

Spur Energy Partners was formed by management in 2019 with a commitment from KKR and is focused on delivering superior long-term investor returns by acquiring and developing oil and gas assets with base production and substantial low-cost development inventory across the Lower 48.

About KKR

KKR is a leading 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. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

Source: KKR

Media:
KKR:
Kristi Huller or Cara Major, + 1-212-750-8300
media@kkr.com

 

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IndiGrid to Acquire Electricity Transmissions Assets Following KKR Investment

KKR

  • Asset acquisition from Sterlite Power to boost IndiGrid’s AUM to INR17,000 crores (US$2.5 billion)
  • Transaction marks KKR’s first Infrastructure investment in Asia Pacific

MUMBAI–(BUSINESS WIRE)–May 4, 2019– India Grid Trust (“IndiGrid” or the “InvIT”), India’s leading infrastructure investment trust, today announced the closing of a preference unit issuance worth INR2,514 crores (US$363 million). As part of the transaction, KKR and GIC have invested INR 1084 crores (US$157 million) and INR 980 crores (US$142 million), respectively, to collectively own 42% of IndiGrid’s outstanding units. KKR has also applied to become a Sponsor of IndiGrid and plans to acquire an additional 15% of IndiGrid’s total units from Sterlite Power. Following the closing of the transactions, KKR and GIC will collectively own approximately 57% of IndiGrid’s outstanding units.

This press release features multimedia. View the full release here:https://www.businesswire.com/news/home/20190504005008/en/

In a separate transaction, KKR will additionally acquire a majority shareholding in Sterlite Investment Managers Limited, the investment manager owned by Sterlite Power. Sterlite Power established IndiGrid in 2016 and will remain a Sponsor and Project Manager of IndiGrid.

With the capital infusion provided by the new unit issuance, IndiGrid will purchase five electricity transmission assets worth INR11,500 crores (US$1.66 billion) from Sterlite Power. A share purchase agreement for the two operational transmission assets — NRSS XXIX and OGPTL — has been signed, while three additional assets will be purchased once they become operational. IndiGrid is an infrastructure investment trust established to own inter-state power transmission assets in India. Following the completion of the proposed acquisitions, IndiGrid’s AUM will rise to INR17,000 crores (US$2.5 billion).

The InvIT currently manages a portfolio of six electricity transmission assets with a total network of power transmission lines that span more than 3,361 circuit kilometers across nine Indian states. The purchase of Sterlite Power’s electricity transmission assets will significantly expand IndiGrid’s portfolio and better enable it to address India’s infrastructure needs.

The transactions mark KKR’s first investment through its Asia Pacific Infrastructure strategy. KKR makes the investment through a proprietary investment vehicle. Each transaction is subject to customary closing conditions, including regulatory and unitholder approvals.

Harsh Shah, CEO of IndiGrid, said, “We welcome KKR, GIC and our other investors and who have showcased their confidence in IndiGrid, and we look forward to benefiting from KKR and Sterlite Power’s expertise and experience in investment and asset management. With this new capital investment, we will reach our goal of INR17,000 crores of assets under management and are well on our way to achieving INR 30,000 crores of assets under management by 2022 while also providing stable and predictable returns to our investors.”

David Luboff, Member & Head of Asia Pacific Infrastructure at KKR, added, “Asia Pacific is a core focus for KKR’s global infrastructure strategy, and India is a key market for us in the region given its dynamism, the scale of investment opportunities and its crucial need for capital solutions. We’re pleased to have chosen leading infrastructure providers like IndiGrid and Sterlite Power as our first investment behind our Asia Infrastructure strategy, and look forward to supporting IndiGrid’s growth, providing further solutions-oriented opportunities and playing an important role in addressing the infrastructure need.”

“India holds a tremendous opportunity for infrastructure investment, in the trillions of dollars in the coming decades,” added Sanjay Nayar, Member & CEO of KKR India. “We believe addressing the country’s infrastructure needs is a priority for the government, industries and communities across India alike, and we are excited to make our foray into this market and contribute as a solutions provider. IndiGrid is a well-managed infrastructure platform and Sterlite Power is a world-class asset manager. We look forward to working together with these teams to grow this platform and support infrastructure development in the coming years.”

Pratik Agarwal, Group CEO of Sterlite Power, said, “Working with an established global investor like KKR advances our mission of becoming Asia’s leading infrastructure investment trust. We believe now is the optimal time to invest in electricity transmission assets because the global clean energy revolution has created unprecedented demand for new transmission infrastructure. Our ability to grow the IndiGrid platform comes at a valuable time, and this opportunity further enables Sterlite Power to focus on its core skillset of developing greenfield assets in India, Brazil and beyond.”

Edelweiss and EY are acting as Indigrid and KKR’s M&A advisors, respectively. Cyril Amarchand Mangaldasserves as Indigrid’s legal counsel and PWC and EY act as Indigrid’s Due Diligence and Tax advisors, respectively. AZB & Partners and Simpson Thacher & Bartlett serve as KKR’s legal counsel, with EY acting as accounting and tax advisor. Khaitan & Co acts as Sterlite Power’s legal counsel.

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About Sterlite Power

Sterlite Power is a leading global developer of power transmission infrastructure with projects of over 12,500 circuit kms and 20,500 MVA in India and Brazil. With an industry-leading portfolio of power conductors, EHV cables and OPGW, Sterlite Power also offers solutions for upgrading, uprating and strengthening existing networks. The Company has set new benchmarks in the industry by use of cutting-edge technologies and innovative financing. Sterlite Power is also the sponsor of IndiGrid, India’s first power sector Infrastructure Investment Trust (“InvIT”), listed on the BSE and NSE.

For more details, please visit www.sterlitepower.com

About IndiGrid

IndiGrid [BSE: 540565 | NSE: INDIGRID] is the first Infrastructure Investment Trust (“InvIT”) in the Indian power sector. IndiGrid owns 6 operating projects consisting of 13 transmission lines with 3,361 ckms length and 3 substations with 7,000 MVA transformation capacity.

For more details, please visit www.indigrid.co.in

About KKR

KKR is a leading 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. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

Source: KKR

For Sterlite Power
Balaji Krishnaswami +91-9971757474
Balaji.krishnaswami@sterlite.com

For IngiGrid
Investor.relations@indigrid.co.in

For KKR
KKR Asia
Anita Davis, +852 3602 7335
Anita.Davis@KKR.com

KKR Americas
Kristi Huller / Cara Major, +1 212-750-8300
Media@KKR.com

Edelman (For KKR India):
Siddharth Panicker, +91-9820-857-522
Siddharth.Panicker@Edelman.com

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