Apollo Funds to Invest $824 million Supporting NextEra Energy Partners’ Acquisition of 50% Interest in 2.5 GW Renewable Energy Portfolio
October 22 2021 - 7:05AM
Apollo (NYSE: APO) today announced that funds managed by its
affiliates (the “Apollo Funds”) have agreed to invest $824 million
in a convertible equity portfolio financing agreement with NextEra
Energy Partners, LP (NYSE: NEP) in a 2.5 GW renewable energy
generation portfolio (the “Portfolio”). The Apollo Funds committed
to the investment as part of the sale of 50% of the Portfolio from
NextEra Energy Resources, LLC, a subsidiary of NextEra Energy, Inc.
(NYSE: NEE) to NextEra Energy Partners.
The Portfolio, which is expected to be operational at the time
of funding, consists of 13 utility-scale wind and solar assets,
three of which include battery storage, that are diversified across
US power markets. The assets have in place long-term power purchase
agreements with diversified, investment-grade counterparties.
NextEra, one of the largest global renewable energy producers, will
provide asset management and O&M services to the portfolio,
aligning Apollo with a world-class operating partner and building
on the Firm’s growing activity within its infrastructure investing
platform.
“At Apollo, we have been actively investing in the clean energy
transition through our infrastructure platform and are pleased to
invest in this blue-chip portfolio of wind and solar assets, which
are supported by long term contracts with investment grade
counterparties,” said Geoff Strong, Apollo Senior Partner and
Co-Head of Infrastructure and Natural Resources. “We are
thrilled to work with NextEra Energy, one of the world’s leading
renewable energy companies, in an innovative transaction that
matches our differentiated sources of capital with NextEra’s
broader growth initiatives in the sector. As we laid out in our
recent Investor Day, we believe our infrastructure platform is
uniquely positioned to scale and will be an important driver of our
growth story, and this transaction showcases our unique
capabilities in this sector.”
This investment builds upon Apollo’s 30-year track record in
which Apollo-managed funds have invested more than $20 billion in
infrastructure-related opportunities across its platform. Led by
Senior Partners Dylan Foo and Geoff Strong, the infrastructure team
focuses on opportunities in communications, power and renewables,
transportation and midstream energy.
The transaction also underscores Apollo’s strong track record of
investing in and lending to companies supporting the clean energy
transition. Since 2018, among other investments, Apollo Funds
have entered into a new venture with Johnson Controls to provide
sustainability and energy efficiency services; invested in US Wind,
an offshore wind developer; formed a joint venture to accelerate
the growth of renewable energy royalties company Great Bay
Renewables; invested in Stagecoach Royalty, a renewable energy land
royalties platform; acquired a majority stake in Arlington Valley,
a utility scale solar asset; acquired Tullahennel, a wind power
asset in Ireland; invested in sustainable bioenergy producer AS
Graanul Invest; and invested in FlexGen, an integration services
and software technology provider for energy storage solutions. In
addition, the Apollo Fund-sponsored Spartan series of special
purpose acquisition vehicles have announced or completed
combinations with Fisker, an EV auto company; Sunlight Financial, a
residential solar financing fintech, and Allego, a leading
pan-European EV charging company.
The transaction is subject to customary closing conditions and
expected to be completed in the fourth quarter of 2021. Allen &
Overy LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP
served as legal counsel to the Apollo Funds.
About Apollo
Apollo is a high-growth, global alternative asset manager. We
seek to provide our clients excess return at every point along the
risk-reward spectrum from investment grade to private equity with a
focus on three business strategies: yield, hybrid and equity.
Through our investment activity across our fully integrated
platform, we serve the retirement income and financial return needs
of our clients, and we offer innovative capital solutions to
businesses. Our patient, creative, knowledgeable approach to
investing aligns our clients, businesses we invest in, our
employees and the communities we impact, to expand opportunity and
achieve positive outcomes. As of June 30, 2021, Apollo had
approximately $472 billion of assets under management. To learn
more, please visit www.apollo.com.
Apollo Contact Information
For Investors:Noah GunnGlobal Head of Investor Relations(212)
822-0528IR@apollo.com
For Media:Joanna RoseGlobal Head of Corporate
Communications(212) 822-0491Communications@apollo.com
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