Apollo Funds to acquire 50% stake in Broad Reach Power from
- Apollo Funds and Existing Shareholder Group Led by EnCap Also Commit to Investing Up to $ 400 Million in New Equity to Accelerate Broad Reach Power’s Growth and Expansion Plans
- Transaction marks first sale of EnCap Energy Transition Fund I
- Expands Apollo’s energy transition business with the first vertically integrated platform
NEW YORK and HOUSTON, November 22, 2021 (GLOBE NEWSWIRE) – Apollo (NYSE: APO) and EnCap Energy Transition Fund I (“EETFI”) today announced that funds managed by Apollo affiliates (the “ Apollo Fund ”) have agreed to acquire a 50% interest in Broad Reach Power LLC (“ Broad Reach ”), a leading large-scale energy and renewable energy storage platform in the United States. The Apollo funds will acquire the interest of existing investor EnCap Investments LP (“EnCap”) and its co-investment partners Yorktown Partners and Mercuria Energy. EnCap and its co-investment partners will retain the remaining 50% and, along with the Apollo funds, will commit to investing up to $ 400 million in additional equity to fund the continued expansion and growth of Broad Reach.
Broad Reach is a leading energy storage platform in the United States, applying advanced energy storage technology and energy market analysis to improve the performance of renewable energy production facilities. and electric. The company has more than 1.4 gigawatt hours of storage assets in operation or under construction and controls a 21 gigawatt (GW) portfolio of wind, solar and energy storage projects nationwide.
“At Apollo, we have been very active in the energy transition, and we are delighted to join EnCap in this investment in Broad Reach, which we believe is the leading energy storage leader in the United States,” said said Geoff Strong, Senior Partner and Co. – Head of Infrastructure and Natural Resources at Apollo. “Broad Reach has a scalable, high-performance platform that is well positioned for continued strong growth, especially as the shift to more intermittent clean energy increases volatility and drives demand for energy storage. “
Broad Reach CEO Steve Vavrik said, “Apollo is a leading global investor with the expertise, capital and motivation to invest in a wide range of energy transition companies, and we are thrilled to welcome them to Broad Reach alongside EnCap, Yorktown Partners and Mercuria. Energy. We see this as an important vote of confidence in Broad Reach and our exciting growth prospects, as we continue to achieve our long-term goal of providing the country with clean, reliable and affordable energy. “
Corinne Still, Director of Apollo, commented: “This transaction unites Apollo with a formidable group of shareholders who have demonstrated significant conviction, commitment and success in building a platform. vast and agile form of clean energy. We look forward to collectively supporting Steve and his team in their future growth. “
“Broad Reach has emerged as a disruptor in the dramatic transformation of the electricity sector in the United States. We believe this transaction both validates the value created by EnCap’s sponsorship of Broad Reach and allows us to continue to participate in its dominant position in the market, ”said Shawn Cumberland, Managing Partner of EnCap Energy Transition, also chairman of the board of directors of Broad Reach. “Apollo is a sophisticated and experienced investor in the energy transition and electricity sector and will be an extremely valuable member of the expanded partnership aimed at accelerating the growth of Broad Reach. “
EnCap has been one of the most aggressive pioneer investors in the rapidly growing US battery storage industry. EnCap’s Energy Transition Platform created Broad Reach in 2019 by bringing together professionals with extensive experience in battery storage systems and proven developers with long experience in renewable energy. The acquisition by the Apollo funds will also represent the first sale by EnCap’s $ 1.2 billion energy transition fund I. In addition to Broad Reach, EETFI controls a strong portfolio that includes Catalyze Energy (most commercial and industrial distributed solar batteries), Solar Proponent (large scale solar), Triple Oak Power (wind power) and Arbor Renewable Gas (clean fuels), between others.
For the Apollo funds, this extends a long experience of investing or lending to companies supporting the clean energy transition. Most recently, this includes committing more than $ 820 million in funding to NextEra Energy Partners for its participation in a renewable power generation portfolio; forming a new business with Johnson Controls to provide sustainability and energy efficiency services; invest in US Wind, an offshore wind developer; form a joint venture to accelerate the growth of the renewable energy royalty company Great Bay Renewables; invest in Stagecoach Royalty, a land royalty platform linked to renewable energies; the acquisition of a controlling interest in Arlington Valley, a large-scale solar asset; the acquisition of Tullahennel, a wind asset in Ireland; and invest in the sustainable bioenergy producer AS Graanul Invest.
The transaction is subject to customary closing conditions and is expected to close by the end of 2021. White & Case LLP served as legal counsel and Citi was the sole financial advisor to EnCap and Broad Reach. Kirkland & Ellis LLP acted as legal advisor to the Apollo funds.
About the extended audience
Broad Reach Power is one of the leading large-scale storage platforms in the United States. Based in Houston, the company has a 21 GW portfolio of large-scale solar energy and energy storage projects in Montana, California, Wyoming and Texas, which provide utilities, producers and producers. Customers have access to technological information and tools to manage market energy risks so that they can better match supply and demand. For more information about the company, visit www.broadreachpower.com.
Apollo is a high growth global alternative asset manager. We seek to provide our clients with excess return at every step of the risk-return spectrum, from investment grade to private equity, by focusing on three business strategies: return, hybrid and equity. Through our investing activity on our fully integrated platform, we meet the retirement income and financial performance needs of our clients, and we deliver innovative capital solutions to businesses. Our patient, creative and knowledgeable approach to investing aligns our clients, the companies we invest in, our employees and the communities we impact on, to expand opportunities and drive positive results. As of September 30, 2021, Apollo had approximately $ 481 billion in assets under management. For more information, please visit www.apollo.com.
About EnCap Investments LP
Since 1988, EnCap Investments has been the leading provider of venture capital to the independent sector of the US energy industry. The company has raised 22 institutional investment funds totaling approximately $ 38 billion and currently manages capital on behalf of more than 350 US and international investors. The EnCap Energy Transition platform is led by four Managing Partners, each with 25 to 30 years of experience in renewable energy and electricity. For more information, please visit www.encapinvestments.com.
Global Head of Investor Relations
Global Head of Corporate Communications
Partner and Head of Investor Relations
303.433.4397, x101 o
EMEA & Asia
+44 (0) 7773331589