Apollo and EnCap Energy Transition Fund I (EETFI) announced that funds managed by Apollo subsidiaries have agreed to acquire a 50% stake in Large Reach Power LLC. Apollo Funds to Acquire Existing Investor’s Stake EnCap SEC Investments 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.
“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 is a utility-scale energy and renewable energy storage platform in the United States, applying advanced energy storage technology and energy market analysis to improve performance of electricity and renewable energy production facilities. The company has more than 1.4 GWh of storage assets in operation or under construction and controls a 21 GW portfolio of wind, solar and energy storage projects nationwide.
“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 delighted to welcome them to Broad Reach alongside EnCap, Yorktown Partners and Mercuria Energy, ”says Broad Reach CEO. Steve Vavrik.
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 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), among others. .
“This transaction unites Apollo with a formidable group of shareholders who have demonstrated significant conviction, commitment and success in building a large and agile clean energy platform,” comments Corinne Still, director of Apollo. “We look forward to collectively supporting Steve and his team in their future growth. “
For the Apollo funds, this extends a history 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.
“Broad Reach has emerged as a disruptor in the dramatic transformation of the electricity sector in the United States. We believe this transaction validates both the value created by EnCap’s sponsorship of Broad Reach and allows us to continue to participate in its dominant position in the market, ”adds Shawn Cumberland, Managing Partner of EnCap Energy Transition and President of the Broad Reach Board of Directors. “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. “