Avantus secures $522m funding from KKR and SMBC for solar and storage projects

In a major development for the clean energy sector, Avantus, a prominent U.S. developer of utility-scale solar and solar-plus-storage projects, has completed the acquisition of a majority equity interest by KKR, a leading global investment firm. This landmark deal, which sees KKR’s investment funds and accounts taking the helm, is set to transform the landscape of renewable energy development across the Western United States.

KKR’s Strategic Investment in Avantus

The acquisition coincides with Avantus securing a substantial $522 million development facility arranged by KKR Capital Markets in partnership with Sumitomo Mitsui Banking Corporation (SMBC). This financial backing is poised to supercharge Avantus’s growth, enabling the company to advance its development portfolio, which now encompasses over 30 gigawatts (GWdc) of solar capacity and 94 gigawatt-hours (GWh) of energy storage.

Cecilio Velasco, Managing Director in KKR’s Infrastructure team, highlighted the significant opportunity ahead for Avantus. He noted that the burgeoning demand for clean energy in the U.S.—driven by factors such as increased data center needs, advancements in artificial intelligence, and the shift towards electrification—positions Avantus to leverage these trends effectively. Velasco emphasized that Avantus is exceptionally well-positioned to capitalise on these growth drivers.

A Boost to Clean Energy Projects

KKR’s participation in this facility through its insurance business is expected to propel Avantus’s pipeline expansion and support essential activities, including securing power purchase agreements (PPAs), finalising interconnection agreements, and covering procurement deposits. The financial injection marks a significant endorsement of Avantus’s experienced team and its proven track record in clean energy development.

Stephanie Perry, Chief Operating Officer at Avantus, expressed enthusiasm about the partnership with KKR and existing investor EIG. She stated that the new capital would enable Avantus to advance its portfolio and develop high-value, high-performance clean energy projects. Perry underscored the commitment to delivering record-breaking solutions that aim to decarbonise the planet at scale.

KKR and EIG: The Power Duo

Since March, KKR has been in the process of acquiring a majority stake in Avantus. With the transaction now complete, KKR and EIG—an influential institutional investor in the global energy and infrastructure sectors—are the sole equity investors in Avantus. Their combined investment, exceeding $1 billion through both equity and debt commitments, underscores a strong commitment to supporting Avantus’s growth trajectory.

Avantus has a remarkable history, having developed and sold projects totaling 7.3 GWdc of solar capacity and 17 GWh of storage. The company boasts a solid presence and a successful development record in key U.S. power markets such as California and Texas, while also contributing to local communities and environmental sustainability.

KKR’s Expertise in Clean Energy

KKR’s investment is driven by its global climate strategy, which focuses on supporting the transition to a low-carbon economy. With over 15 years of experience in infrastructure investing, KKR has a deep well of expertise in renewable energy and climate-related investments, having committed more than $15 billion to this sector from its infrastructure platform alone.

Avantus continues to push the boundaries of solar energy technology, developing one of the nation’s largest solar clusters and pioneering projects that outpace fossil fuel prices. Today, the company is expanding its portfolio of solar plants with integrated storage, aiming to provide affordable, zero-emission energy to 20 million people around the clock.

Expert Opinion: The Future of Clean Energy

The strategic investment by KKR and EIG is set to accelerate Avantus’s impact on the clean energy sector. Industry experts believe that this partnership not only enhances Avantus’s capabilities but also signals a significant shift towards large-scale, reliable, and sustainable energy solutions. By aligning with KKR’s extensive experience in renewable energy, Avantus is poised to lead the charge in delivering transformative clean energy projects that will shape the future of the industry.