Funds managed by Apollo’s affiliates have made a first close on $816 million in a convertible equity portfolio financing agreement with NextEra Energy Partners LP in a 2.5 GW contracted renewable energy generation portfolio.
The portfolio consists of 13 utility-scale wind and solar assets, three of which include battery storage, that are geographically diversified across nine U.S. states. The assets have in place long-term power purchase agreements with diversified, investment-grade counterparties. NextEra will provide asset management and O&M services to the portfolio.
“In our view, this transaction has many hallmarks of how Apollo is helping to facilitate the clean energy transition, combining our infrastructure expertise, strong institutional relationships and a flexible, scaled capital base to commit in size and with speed to transactions of this nature,” states Geoff Strong, an Apollo partner and co-head of infrastructure and natural resources.
“This transaction showcases our ability to bring bespoke, scaled investment opportunities to our institutional partners, while serving as a solutions partner to NextEra, helping them to redeploy capital into new, earlier stage renewable energy opportunities,” says Craig Farr, an Apollo partner and head of capital solutions.