Blackrock Alternatives Acquires Jupiter Power from EnCap Investments

Asset manager BlackRock has acquired battery energy storage developer Jupiter Power from private equity firm EnCap Investments through its Blackrock Alternatives arm for an undisclosed amount.

EnCap Energy Transition Fund I (EETF I) and co-investment partners Yorktown Partners and Mercuria Energy are selling Jupiter. The transaction is expected to close by the end of the year. Jupiter will be managed by a fund through BlackRock’s Diversified Infrastructure business.

The Jupiter acquisition is the second exit transaction by EnCap’s $1.2 billion EETF I.

Jupiter is focused on developing large-scale, stand-alone energy storage projects that can offer grid support and renewable integration as part of the energy transition.

The company owns and operates a large storage fleet in Texas comprising 655MWh, and currently has 340MWh of new projects in or near construction, including its first project in California.

EnCap was an early investor in Jupiter and has been an aggressive provider of capital in the fast-growing US energy storage business since it began pursuing opportunities created by the global transition to a lower-carbon energy system.

White and Case and Lazard served as legal and financial advisors, respectively, to the sellers while Simpson Thacher & Bartlett provided legal advisory services to BlackRock.