KKR has agreed to invest $900 million in a partnership with NextEra Energy Partners LP that owns a geographically diverse portfolio of ten utility scale wind and solar projects across the U.S., consisting of about 1,192 megawatts.
NEW YORK–(BUSINESS WIRE)–Mar. 4, 2019– KKR today announced the signing of a definitive agreement with NextEra Energy Partners, LP (NYSE: NEP or “NEP”) to acquire an equity interest in a newly-formed partnership with NEP that owns a geographically diverse portfolio of ten utility scale wind and solar projects across the United States, collectively consisting of approximately 1,192 megawatts.
“We’re excited to partner with NextEra, a world class renewable energy developer and operator, on this portfolio of high quality contracted wind and solar assets,” said Brandon Freiman, Member of KKR and Head of the Firm’s Infrastructure business in the Americas. “This diverse portfolio of ten fully-operational renewable energy projects, all of which benefit from long-term contracts with investment grade customers, is an excellent addition to our portfolio.”
KKR has a track-record of investing in renewable energy, with significant capital deployed in renewable assets including more than 4 GW 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 pre-determined return levels between 3.5 and 7.0 years after the formation of the partnership. KKR’s share of partnership cash flows increases to 99% 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 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.