Global investment firm KKR is expanding its renewable energy portfolio through a new wind and solar investment with NextEra Energy Partners LP (NEP).
KKR signed a definitive agreement with NEP to acquire an equity interest in a newly formed partnership with NEP that owns a geographically diverse portfolio of 10 utility-scale wind and solar projects across the U.S., collectively consisting of approximately 1,192 MW.
“We’re excited to partner with NextEra, a world-class renewable energy developer and operator, on this portfolio of high-quality contracted wind and solar assets,” states Brandon Freiman, member of KKR and head of the firm’s infrastructure business in the Americas.
KKR’s investment will be in the form of an equity interest in a newly formed structured partnership with NEP in which NEP has certain rights to acquire KKR’s interest over time at pre-determined return levels between 3.5 and 7.0 years after the formation of the partnership.
KKR’s share of the partnership’s cash flows increases to 99% in the event that such call options are not exercised within certain milestones. KKR’s $900 million investment will be funded via a mix of new term loan financing and equity from its third Global Infrastructure Investors fund, which closed in September 2018 with $7.4 billion in commitments.
Globally, KKR has significant capital deployed in renewable assets, including more than 4 GW of installed capacity. Within its overall infrastructure strategy, KKR has $12.6 billion in assets under management.