KKR Takes Majority Stake in Solar Developer Avantus

KKR has agreed to purchase a majority stake in Avantus, a developer of utility-scale solar and solar-plus-storage projects in the U.S., joining current infrastructure-focused investor EIG in a $1 billion investment.

The transaction marks KKR’s first U.S. investment from its Global Climate Strategy. This deal will see KKR and EIG become the sole equity investors in Avantus.

Avantus, founded in 2009, is involved in all phases of solar and energy storage development, from site selection to operational management. The company has 94GWh of battery storage capacity and 30GW of solar power projects under development.

It has established a development track record in the Southwestern U.S. and California power markets. Since inception, Avantus has developed and sold 6.5GW of solar and 6.3GWh of storage projects.

“To support an economy-wide energy transition, there is a need to significantly expand renewable energy generation by 2050 and enable grid electrification,” said KKR partner and global climate strategy co-head Charlie Gailliot. “Because of these tailwinds, we see enormous opportunity for Avantus.”

KKR plans to implement an equity ownership program for Avantus employees, allowing them to share in the company’s ownership benefits.

The acquisition is the latest in a string of energy transition infrastructure-focused deals for KKR, which also made a $3 billion takeover offer for German renewable energy platform Encavis last week, as well as the $1.7 billion acquisition of Scotland-based energy and electrifications solutions company Smart Metering Systems (SMS) in December 2023.

KKR has also recently developed several sustainable energy platforms, including Virescent Infrastructure in India, Aster Renewable Energy in Asia, and Stellar Renewable Power, which target long-term, high-yielding solar energy investments.