November 23 (Renewables Now) - Funds managed by US investment firm Apollo Global Management Inc (NYSE:APO) have agreed to purchase a 50% interest in US platform Broad Reach Power LLC which owns a 21-GW portfolio of wind, solar and energy storage projects.
Under the deal, the value of which was not disclosed, the Apollo funds will acquire the stake from the target’s existing investor EnCap Investments LP and its co-investment partners Yorktown Partners and Mercuria Energy. The transaction is seen to be finalised by the end of this year.
Houston, Texas-based Broad Reach owns a portfolio of utility-scale wind, solar and energy storage power projects across Montana, California, Wyoming, and Texas. The company was set up in 2019 by EnCap’s energy transition platform.
Apollo, EnCap and its co-investment partners have pledged to jointly invest up to USD 400 million (EUR 354.8m) of additional equity to fund the growth of Broad Reach’s business and the further expansion of its pipeline. “We view this as a significant vote of confidence in Broad Reach and our exciting growth prospects, as we continue to execute on our long-term goal to supply the nation with clean, reliable and affordable power,” said Steve Vavrik, CEO of Broad Reach.
White & Case LLP served as the legal advisor of the transaction, while Citi acted as the sole financial advisor to EnCap and Broad Reach.
Apollo’s acquisition comes on the heels of its pledge from October to provide USD 824 million of funding to back NextEra Energy Partners LP’s (NYSE:NEP) purchase of a 50% stake in a renewable energy portfolio totalling 2,520 MW.
(USD 1.0 = EUR 0.887)