Global alternative asset and private equity investor KKR announced today a significant minority investment in impact-focused US renewable energy solutions firm Sol Systems, through its Global Infrastructure Investors III fund. The companies also announced a strategic partnership, which will see KKR acquire up to $1 billion to acquire shovel-ready projects from Sol.
Since its establishment in 2008, Sol has developed and financed over 1 GW of solar projects valued at more than $1 billion, for companies including Microsoft and Walmart, as well as municipalities, counties, utilities, universities, and schools. According to the company, Sol’s approach enables positive impact by helping customers to source renewable energy and invest in sustainable infrastructure while creating dedicated income streams for under-resourced communities, and those disproportionately impacted by climate change.
Yuri Horwitz, Co-Founder and Chief Executive Officer of Sol Systems, said:
“Over the last decade, our guiding principles have been to do good work with good people, and do what’s right for the communities we work in. We bring focus and discipline to delivering on these ideals. In KKR, we have found an aligned organization and team that was excited to do this work with us, and is committed to accelerating and supporting our approach to investing in sustainable infrastructure with community impact. Looking ahead, we plan to dramatically scale the work we’re doing with our partners as we all transition to a more sustainable, resilient and equitable future.”
The agreement marks the latest in a series of energy transition-focused moves for KKR. In November, the firm announced a series of renewable energy investment agreements worth $2 billion with energy provider NextEra, and it also recently launched Virescent Infrastructure, a new platform aiming to acquire, own and operate renewable assets in India. Earlier this year, the company announced a series of renewable energy and energy transition-focused hires in its Global Infrastructure team.
Over the last ten years, KKR has executed nearly $20 billion in investments in renewable assets with a power generation capacity of 12.5 GW. deploying more than $4.7 billion in renewable assets at a combined enterprise value exceeding $19.5 billion, with a power generation capacity of 12.5 GW.
Tim Short, Managing Director at KKR, said:
“Sol Systems is a market-leading, integrated provider of truly differentiated sustainable energy solutions. Yuri and his team embody an approach to responsible investment that very much aligns with our own, and one that we are proud to be investing behind. We look forward to helping grow the platform even further in response to the significant demand for thoughtful and customer-driven renewable energy offerings.”