Apollo-managed funds are acquiring a 50% stake in US utility-scale energy storage and renewable energy platform from EnCap Investments.
The Apollo funds have agreed to buy the stake in Broad Reach Power from the EnCap Energy Transition Fund I (EETFI) fund.
Existing investor EnCap and its co-investment partners Yorktown Partners and Mercuria Energy will retain the other 50% stake.
In a joint statement, the companies said the Apollo funds and the existing investors expect to invest up to $400m (€356m) of additional equity to fund Broad Reach’s continued expansion and growth pipeline.
Broad Reach has more than 1.4GWh of storage assets in operation or under construction and controls a 21GW portfolio of utility-scale wind, solar and energy storage power projects across the US.
Geoff Strong, a senior partner and co-head of infrastructure and natural resources at Apollo, said: “At Apollo we have been highly active in the energy transition, and we are thrilled to join EnCap in this investment in Broad Reach, which in our view is the premier energy storage leader in the US.
“Broad Reach has a scaled, high-performing platform that is well-positioned for strong continued growth, particularly as the shift to more intermittent clean energy increases volatility and drives demand for energy storage.”
Shawn Cumberland, EnCap Energy transition managing partner and chairman of the Broad Reach board of directors, said: “We believe this transaction both validates the value created by EnCap’s sponsorship of Broad Reach and allows us to continue to participate in its dominant position in the market.
“Apollo is a sophisticated and experienced energy transition and power industry investor and will be an extremely valuable member in the expanded partnership to accelerate Broad Reach’s growth.”
EnCap’s energy transition platform established Broad Reach in 2019 by bringing together professionals with extensive experience in battery storage systems and proven developers with long track records in renewables.
The acquisition by the Apollo Funds will also represent the first sale by EnCap’s $1.2bn EETFI fund.
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