Global alternative asset and private equity investor KKR announced today the launch of Virescent Infrastructure, a new platform aiming to acquire, own and operate renewable assets in India. According to KKR, Virescent will target investment opportunities that have stable cash flows stemming from long-term contracts with state and central government counterparties across India.
Virescent is headquartered in Mumbai, and currently owns 317MWp of solar assets located in Maharashtra and Tamil Nadu. The platform aims to expand its diversified portfolio of operational renewable energy assets, facilitated by investments predominantly made through KKR’s infrastructure fund. KKR stated that it has already entered into definitive agreements to acquire other operating solar projects across three different states, adding to the Virescent platform.
Hardik Shah, a Managing Director on KKR’s Infrastructure team, said:
“The launch of Virescent is a meaningful milestone for KKR’s Asia Pacific infrastructure strategy amid India’s ambitions to install 175GW of renewable energy capacity by 2022 and 450GW by 2030. We look forward to playing a part in meeting these goals and supporting the Government’s Green Energy Corridor initiative through our investment in Virescent.”
Virescent is led by CEO Sanjay Grewal, who was appointed by KKR in June to spearhead its renewable energy vertical in India. Prior to joining Virescent, Grewal was CEO of Altico Capital, one of the largest foreign owned and controlled non-banking financial companies by net worth headquartered in Mumbai.
“Positive government initiatives have created a number of long-term investment opportunities in India’s rapidly transforming renewable energy sector. We are thrilled that Virescent will seek to invest in many of these great opportunities, in addition to achieving stable returns by acquiring high-quality, low-risk, and income-yielding assets with stable and long-term cashflows. I am truly excited to be part of this dynamic industry and for the chance to enhance KKR’s infrastructure strategy by building Virescent’s renewables portfolio.”
KKR stated that the launch of Virescent comes as renewables are expected to become an increasingly important energy source for citizens across India. According to the country’s Ministry of Power and New & Renewable Energy, renewable energy is estimated to comprise approximately 60% of India’s installed power capacity by 2030, from 24% today. Globally, renewable energy represents a key vertical within KKR’s infrastructure strategy, having invested in renewable energy businesses with more than 10,000 MW of total operational capacity.