Alternative investment manager Apollo Global Management announced today that one of the firm’s infrastructure funds has made a structured investment in offshore wind developer US Wind, consisting of convertible debt and equity commitments of up to $265 million. The funds raised by US wind will go towards development and construction costs associated with a major offshore wind energy project off the coast of Maryland.
The investment marked the first for Apollo’s second dedicated infrastructure fund, Apollo Infrastructure Opportunities Fund II LP. In regulatory filings last month, the firm indicated it is seeking to raise $3.5 billion for the fund.
Geoffrey Strong, Senior Partner and Co-Head of Infrastructure and Natural Resources at Apollo, said:
“US Wind is a premier developer at the forefront of an offshore wind energy industry that is rapidly expanding in both the US and abroad, as interests coalesce around clean energy. For Apollo, this is an exciting partnership that leverages our track record in renewable energy infrastructure investments and underlines the Firm’s strong commitment to sustainability.”
Baltimore, Maryland-based US Wind is a leading offshore wind development company, with a federal lease for site control to develop up to 1.3 GW of offshore wind power generation off the coast of Maryland. The first phase of the project, scheduled to come online in early 2024, will have a capacity of 270 MW, enough to power more than 75,000 Maryland homes.
Riccardo Toto, President of US Wind, said:
“We believe our strategic partnership with Apollo will create significant value for US Wind and the state of Maryland in advancing development of our offshore wind projects. Apollo is a creative and dynamic partner, with global expertise, and together we believe we can make a positive impact on the energy transition in the United States.”
Brad Fierstein, Principal at Apollo, added:
“We are pleased to work with Riccardo and the entire US Wind team to advance this important project to meet Maryland’s renewable energy goals, while creating high-quality jobs and driving significant local investment in the Baltimore area.”