Ares Leads Up to $600 Million Investment in Softbank’s Climate Infrastructure Platform SB Energy
SoftBank Group’s U.S. renewable energy-focused platform SB Energy announced today a strategic equity investment of up to $600 million, led by the Infrastructure and Power strategy of global alternative investment manager Ares Management Corporation.
Softbank launched SB Energy Global Holdings in 2015 as a joint venture with India’s Bharti Enterprises and Foxconn. In 2019, Softbank expanded the SB Energy platform to the U.S. with the acquisition of a 1.7 GW portfolio from Intersect Power, consisting of 5 solar power plant projects in California and Texas. Construction of the projects began in 2020, and is already providing 1.3 GW of energy.
SB Energy stated that it aims to deliver 10 gigawatts (GW) of renewable energy and storage projects in operation or under construction by the end of 2025.
Michel Combes, CEO of SoftBank Group International, said:
“SoftBank launched SB Energy to accelerate access to reliable, cost-effective, renewable energy. Combining AI and technology with renewable deployment at scale is critical to the energy transformation and benefits people across the globe. Our new investment from Ares brings together Ares’ climate infrastructure experience, SoftBank’s AI and technology ecosystem, and SB Energy’s track record of execution into a single platform to deliver flexible renewable energy at scale.”
SB Energy co-CEO Rich Hossfeld added:
“We are proud to announce Ares’ funds’ investment, which launches a new chapter for SB Energy and an expansion of our collaboration with Ares that began in 2020. With the support of both Ares and SoftBank, SB Energy will rapidly scale our strategic platform in renewable energy, storage, and new digital products as a developer, owner, and operator of the next generation of climate infrastructure and technology.”
Ares has invested over $2 billion in climate infrastructure since 2015.In December, the firm announced that it had raised $2.2 billion of dedicated climate infrastructure capital, including $1.4 billion through the final close of its inaugural Ares Climate Infrastructure Partners Fund (ACIP), and another $800 million in related transaction vehicles.
Andrew Pike, Partner and Co-Head of Ares Infrastructure and Power, said:
“We are excited to work with SB Energy to leverage our combined strengths in driving the clean energy transition. Our investment in SB Energy builds on our existing relationship and reflects our focus on supporting high-quality climate infrastructure platforms through our innovative capital solutions.”
Mike Roth, Partner in Ares Infrastructure and Power, added:
“Ares and SB Energy share a commitment to accelerating the transition to a low carbon economy through the development of essential climate infrastructure assets. With the added support of Ares’ flexible capital, SB Energy is well-positioned to meet the growing demand for sustainable clean energy and build on its strong track record, including having brought online nearly 2 GW of solar in just two years.”