KKR invests up to $603m in HMC Capital's energy transition platform
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The news: Private equity giant KKR will invest up to $603 million into HMC Capital's energy transition platform under a new strategic partnership between the two companies.
The numbers: The investment, funded by KKR's global climate transition strategy, will introduce KKR as a strategic partner alongside HMC in the platform's existing 652-megawatt operational assets and its 5.7-gigawatt battery energy storage systems and wind development pipeline.
The investment comprises $355 million in upfront funding and a follow-on commitment of up to $248 million to support further growth in the platform. Upon repayment, KKR will hold a minority equity investment in the platform.
HMC will reduce invested capital in the platform to around $200 million, with proceeds used to repay the existing mezzanine facility and HMC's corporate debt facility.
The context: KKR's investment will support the platform's continued expansion, including the development of new battery storage and wind projects. HMC also said the two companies will explore new opportunities to leverage HMC's capability in Australia and KKR's global network and expertise.
What they said: "KKR's investment validates the quality of the platform we have built and sets the foundation for HMC to play a major role in Australia's transition to net zero carbon by 2050," said HMC managing director and CEO David Di Pilla.
"KKR's capital will enable the platform to materially grow operating capacity, cash flow and progress the strategically valuable development pipeline."
The source: ASX
