KKR Invests with NextEra Energy and NextEra Energy Partners in Portfolios of Renewable Energy Assets
KKR has announced its agreements with NextEra Energy Resources and NextEra Energy Partners to acquire equity interests in portfolios of renewable energy assets, totaling approximately $1.4 billion. This investment includes a $300 million equity purchase for a 50% interest in a 1,000 MW portfolio and a $1.1 billion convertible equity financing for a 1,125 MW portfolio. KKR's commitment extends to $900 million for future renewable energy transactions. The assets have around 19 years of power purchase agreement duration and will grow KKR's jointly-owned renewable generation assets to over 2.3 GW.
- KKR's investment enhances its renewable energy portfolio with 1,625 MW of assets.
- The transaction aligns KKR's interests with NextEra Energy, the largest generator of energy from wind and solar.
- KKR will leverage its existing relationship with NextEra through prior transactions.
- The deal increases KKR's jointly-owned renewable generation assets to over 2.3 GW.
- None.
NEW YORK--(BUSINESS WIRE)--Global investment firm KKR today announced the signing of agreements with NextEra Energy Resources, LLC, a subsidiary of NextEra Energy, Inc. (NYSE: NEE), and NextEra Energy Partners, LP (NYSE: NEP) relating to two separate transactions to acquire equity interests in portfolios of contracted utility-scale wind and solar assets.
KKR will invest approximately
KKR has also signed a Letter of Intent with NextEra Energy Partners to invest approximately
“We are pleased to participate in this landmark transaction to acquire contracted, highly diversified renewable energy assets and support the future growth of NextEra Energy, the world’s largest generator of energy from the wind and sun,” said Brandon Freiman, KKR Partner and Head of North American Infrastructure. “We have built a strong relationship with the NextEra Energy Partners team through our two prior transactions and we are proud to support the development of future clean energy projects while delivering attractive exposure for our investors to core infrastructure assets.”
The assets in the portfolios consist of 12 distinct operating utility-scale wind and solar assets in geographically diverse locations throughout the United States. The assets have approximately 19 years of remaining weighted average power purchase agreement (PPA) duration contracted with investment grade counterparties. The equity financing KKR is providing NextEra Energy Partners to fund this transaction will grow the portfolio of jointly-owned renewable generation assets to over 2.3 gigawatts (GW), further deepening the alignment of interests between both parties. NextEra Energy Resources’ retained interest in the assets, also provides alignment of interests with KKR. Affiliates of NextEra Energy will continue to operate, maintain and manage the facilities on behalf of the partners.
KKR will make the investment through its core infrastructure strategy, as well as with participation by Healthcare of Ontario Pension Plan (HOOPP Infrastructure), the CAAT Pension Plan and Varma Mutual Pension Insurance Company. KKR has a decade of experience investing in renewable energy, with significant capital deployed in renewable assets including more than 10.5 GW of installed renewable capacity. KKR invests in infrastructure assets on a global basis, with a team of more than 45 dedicated investment professionals who handle transactions across a range of sub-sectors and geographies.
About KKR
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, 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.
