SB Energy, SoftBank Group’s U.S. Renewables Platform, Announces Strategic Equity Investment From Ares Management

Rhea-AI Summary

SB Energy Global has secured a strategic equity investment of up to $600 million from funds managed by Ares Management Corporation to enhance its Climate Infrastructure Technology platform. The funding aims to accelerate the development of renewable energy solutions in the U.S., contributing to a target of 10 GW of renewable projects by 2025. Since its U.S. launch in 2019, SB Energy has completed 1.7 GW of solar projects, with significant backing from both SoftBank and Ares to foster further growth and innovation in clean energy.

Positive

• Secured up to $600 million in strategic equity from Ares, enhancing financial stability.
• Plans to deliver 10 GW of renewable energy by the end of 2025.
• Successfully completed 1.7 GW of solar projects since 2019, demonstrating strong execution.
• Achieved over $4 billion in tax equity and project financing since inception.

Negative

• None.

Leading Climate Infrastructure Technology Platform to Accelerate Growth and Provide Flexible Renewable Generation at Scale

REDWOOD CITY, Calif.--(BUSINESS WIRE)-- SB Energy Global, LLC (“SB Energy”) announced today that funds managed by the Infrastructure and Power strategy of Ares Management Corporation (“Ares”) are leading a strategic equity investment of up to $600 million, including capital from potential co-investors, in SB Energy, SoftBank Group Corp.’s (“SoftBank”) U.S. Climate Infrastructure Technology platform. The Ares-managed funds have committed the majority of the financing, with the balance expected to come from co-investors. This investment brings together two leading technology and climate infrastructure investors to drive innovation and the deployment of clean energy at scale.

Michel Combes, CEO of SoftBank Group International, stated, “SoftBank launched SB Energy to accelerate access to reliable, cost-effective, renewable energy. Combining AI and technology with renewable deployment at scale is critical to the energy transformation and benefits people across the globe. Our new investment from Ares brings together Ares’ climate infrastructure experience, SoftBank’s AI and technology ecosystem, and SB Energy’s track record of execution into a single platform to deliver flexible renewable energy at scale.”

SB Energy has quickly grown its Climate Infra-Tech platform with plans to deliver 10 gigawatts (GW) of renewable energy and storage projects in operation or under construction by the end of 2025. Since launching in the U.S. market in 2019, the company has completed development of, financed, and started construction on nearly 1.7 GW of utility-scale solar projects, of which 1.3 GW are currently providing clean, reliable energy to Texas and California.

SB Energy continues to aggressively grow its renewable energy and storage project pipeline through greenfield development, partnerships, and acquisitions, while also expanding in its digital and technology capabilities. In addition to capital from SoftBank and Ares, SB Energy has forged partnerships with leading financial institutions to secure more than $4 billion in tax equity and project financing since inception to develop and build renewable projects and make further investments in the clean energy transition.

“We are proud to announce Ares’ funds’ investment, which launches a new chapter for SB Energy and an expansion of our collaboration with Ares that began in 2020,” said SB Energy co-CEO Rich Hossfeld. “With the support of both Ares and SoftBank, SB Energy will rapidly scale our strategic platform in renewable energy, storage, and new digital products as a developer, owner, and operator of the next generation of climate infrastructure and technology.”

“We are excited to work with SB Energy to leverage our combined strengths in driving the clean energy transition,” said Andrew Pike, Partner and Co-Head of Ares Infrastructure and Power. “Our investment in SB Energy builds on our existing relationship and reflects our focus on supporting high-quality climate infrastructure platforms through our innovative capital solutions.”

“Ares and SB Energy share a commitment to accelerating the transition to a low carbon economy through the development of essential climate infrastructure assets,” said Mike Roth, Partner in Ares Infrastructure and Power. “With the added support of Ares’ flexible capital, SB Energy is well-positioned to meet the growing demand for sustainable clean energy and build on its strong track record, including having brought online nearly 2 GW of solar in just two years.”

Milbank LLP served as outside counsel to SB Energy, Kirkland & Ellis LLP served as outside counsel to the Ares-managed funds, and Morrison & Foerster LLP served as outside counsel to SoftBank on the transaction.

About SB Energy

SB Energy is a leading utility scale solar, energy storage, and technology platform backed by SoftBank Group Corp. and funds managed by the Infrastructure and Power strategy of Ares Management Corporation. We develop, construct, and own and operate some of the largest and most technically advanced renewable projects across the United States. SB Energy’s mission is to provide flexible renewable energy at scale, accelerating the global energy transition, and benefiting our planet, customers, communities, and people. For more information, visit SBEnergy.com.

About SoftBank Group

The SoftBank Group invests in breakthrough technology to improve the quality of life for people around the world. The SoftBank Group is comprised of SoftBank Group Corp. (TOKYO: 9984), an investment holding company that includes stakes in telecommunications, internet services, AI, smart robotics, IoT and clean energy technology providers; the SoftBank Vision Funds, which are investing more than US$140 billion to help extraordinary entrepreneurs transform industries and shape new ones; the US$5 billion SoftBank Latin America Fund, the largest venture fund in that region; the US$3 billion SoftBank Latin America Fund II; and the SB Opportunity Fund, a US$100 million fund investing in Black, Latinx and Native American founders in the U.S. To learn more, please visit https://group.softbank/en.

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of December 31, 2021, Ares Management Corporation’s global platform had approximately $306 billion of assets under management, with approximately 2,100 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220306005050/en/

Media Contacts

For SB Energy:

Sard Verbinnen & Co

Hannah Dunning / Benjamin Spicehandler

SoftBank-SVC@SARDVERB.com

For Ares:

Carl Drake, +1 888-818-5298

or

Jacob Silber, +1 212-301-0376

media@aresmgmt.com

Source: SoftBank Group

FAQ

What are the details of Ares Management's investment in SB Energy in 2023?

Ares Management is leading a strategic equity investment of up to $600 million in SB Energy, aimed at enhancing its Climate Infrastructure Technology platform.

What is SB Energy's goal for renewable energy by 2025?

SB Energy aims to deliver 10 GW of renewable energy projects by the end of 2025.

How much renewable energy has SB Energy developed since its U.S. launch?

Since its U.S. launch in 2019, SB Energy has completed the development of 1.7 GW of solar projects.

Who are the main partners in SB Energy's funding?

The main partners in SB Energy's funding are Ares Management and SoftBank Group.

What is the significance of the investment from Ares Management for SB Energy?

The investment signifies a strong partnership and provides SB Energy with capital to accelerate its growth in renewable energy and technology.