Alternative asset management firm Ares announced the formation of Tango Holdings, a new joint venture with Shell subsidiary Savion Equity, to invest in solar power generation in the U.S.

The new entity is jointly owned by the two firms, with Ares owning 80% and Savion 20%.

Founded in 2019, Savion has been focused on the development of large-scale solar and energy storage projects across 28 U.S. states. Tango will now oversee a portfolio of 496 megawatts of solar projects developed by Savion across Ohio, Kentucky Oklahoma and Indiana. It will also hold equity interests in Martin County Solar Project, Kiowa County Solar Project and three additional solar projects under construction.

In the joint venture, Savion will act as the managing member of Tango, with Shell Renewable Asset Management International responsible for asset management of the projects.

The deal was structured to sign and close simultaneously, taking immediate effect. Further terms were not disclosed.

Over the past year, the Ares fund has acquired interests in power generation assets totaling more than four gigawatts across nine states and four power markets.

Steve Porto, Partner in the Ares Infrastructure Opportunities strategy, said:

“We look forward to partnering with Savion on this exciting initiative that allows us to draw on our combined capabilities in power generation to support these important assets. As a leading investor in critical private infrastructure projects, we believe Ares’ scale and experience across the asset life cycle alongside Savion’s operational prowess will help bolster the supply of electricity in key US markets as we seek to deliver attractive returns for our investors.”

According to Shell, the transaction forms part of its strategy to selectively develop renewable generation projects, and reduce ownership as they mature. Shell said that it plans to continue developing other onshore renewable power generation assets through Savion’s development pipeline.

Greg Joiner, Executive Vice President for Power at Shell, said:

“The investment by Ares is a testament to Savion’s success building and operating assets that deliver renewable power to key energy markets in the USA. Launching Tango with a strategic investment partner like Ares will allow us to maximize value of our power generation portfolio as we continue to build a more focused, competitive and adaptive business.”