KKR to Acquire a Majority Stake in Solar Firm Avantus

KKR announced that it agreed to take a majority stake in solar power developer and operator Avantus. With the only other equity investor in the company, EIG, the two companies have arranged a combination of equity and development financing facility that should total “upwards of $1 billion in the aggregate.”

Avantus, founded as 8minute Solar Energy in 2009, claims a “project pipeline of 30 GWp of solar and 94 GWh of battery storage, enough to provide 20 million people with clean, reliable power.” It claimed a “substantial presence and track-record of successful development in the southwestern U.S. and California power markets” and a history of having developed and sold “6.5 GWp and 6.3 GWh of solar and storage projects, respectively.”

It would be difficult to argue against the future importance of solar power in the U.S. The Inflation Reduction Act of 2022 made clear the need for ongoing creation of sustainable energy through the high financial support given to support the industry. Both generation and storage become two halves of where the country needs to invest.

KKR says that it has 15 years of infrastructure investment with “deep expertise in renewable energy and climate-related investments” and a history of $15 billion in investment already.

All three companies say that Avantus is currently benefiting from “material secular tailwinds supporting renewables development.”

“To support an economy-wide energy transition, there is a need to significantly expand renewable energy generation by 2050 and enable grid electrification. Because of these tailwinds, we see enormous opportunity for Avantus. The company’s impressive team and development track record, coupled with its mature project pipeline, set it apart from other renewables developers,” Charlie Gailliot, partner and co-head of global climate strategy at KKR, said in prepared remarks.

“EIG has been pleased to support Avantus since 2021, through capital solutions uniquely tailored to the company’s needs and goals,” Blair Thomas, EIG chairman and chief executive officer, said in prepared remarks. “Throughout our partnership, Avantus has maintained and extended its position as one of the leading and most innovative renewables developers in the United States, helping to spur the industry’s rapid growth and expanding access to affordable, reliable and clean energy.”