Macquarie to Buy Minority Stake in D.E. Shaw Renewables Investment
Macquarie Asset Management (MAM), an Australian investment bank, has agreed to purchase a significant minority stake in US independent power producer D.E. Shaw Renewable Investments (DESRI) through various managed funds in a deal valued up to $1.73 billion.
The MAM-managed funds include Macquarie Global Infrastructure Fund (MGIF), Macquarie Green Energy and Climate Opportunities Fund (MGECO) and Macquarie Energy Transition Infrastructure Fund International (METI).
DESRI, established in 2010, develops, owns, and operates U.S. utility-scale solar, wind, and battery storage facilities. The company manages more than 6 gigawatts (GW) of gross capacity in operational or under-construction projects, with another 4 GW committed for pre-construction. DESRI’s development pipeline exceeds 25 GW.
DESRI also has long-term power purchase agreements (PPAs) in place with a diverse range of off-takers in 24 states, including corporations, utilities, and co-operatives. The deal will complement MAM’s 12 GW of operational capacity and more than 90 GW of green energy assets under development across its portfolio.
“We are excited to invest in DESRI, an energy transition platform of scale with a proven, highly-regarded management team and a large base of operating assets which we expect will grow over the medium term through the successful completion of late-stage projects,” said Christopher Frost, senior managing director, Macquarie Asset Management – Real Assets. “This transaction underscores MGIF’s objective of expanding our global portfolio of diversified core infrastructure assets.
Lazard served as financial advisor and King & Spalding served as legal advisor to MAM. Goldman Sachs & Co. LLC served as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to DESRI.