New York City headquartered private equity giant Kohlberg Kravis Roberts & Co (KKR) are known throughout the industry as one of the firms highly committed to renewable energy investments. It is no surprise that KKR have made yet further steps into this industry, acquiring a third of the renewable energy arm of Spanish conglomerate Acciona.
According to a report on the PV Magazine website, KKR has paid $500million to acquire the stake. Acciona holds renewable energy assets in its homeland as well as in another 14 countries. While most of Acciona’s interests are related to wind energy, they also have small and developing footholds in the concentrated solar power and photovoltaics markets.
Current projects include a large development related to photovoltaics in Chile, although it is likely to be some time before this is completed and is operational.
The entire Acciona business, Acciona Energia Internacional, is now believed to have an enterprise value of over $3.3billion, with that sum split roughly 50/50 between equity and net debt.
It was also announced that KKR and Acciona are planning to launch a yieldco to own some of the assets of the business. This investment is one of KKR’s largest into the renewable energy market, and is likely to see a higher level of involvement and engagement from the firm.
An industry analyst from Greentech Media Research told PV Magazine, “From the U.S.-specific lens, KKR is one of the players that has been an unconventional entrant into acquiring and owning solar assets long-term. This is transitioning KKR from being a passive, one-off buyer of renewable energy projects, to a more active development stake.”
“There are a select number of private equity firms that have really scaled up their investment in solar. KKR is definitely one of the most visible companies out there.” Overall, KKR has been busy lately, making investments in Africa and South East Asia, as well as refocusing its efforts in India.