KKR, a prominent global investment firm, has finalized a definitive agreement to acquire a majority stake in Avantus, a leading developer of large-scale solar and solar-plus-storage projects in the United States. Under the agreement, investment funds and accounts managed by KKR will take over the majority ownership, alongside existing investor EIG, a significant institutional investor in energy and infrastructure sectors. Together, KKR and EIG will become the sole equity investors in Avantus, showing their commitment to supporting the company’s growth.
Established in 2009, Avantus specializes in solar and energy storage development across the entire project lifecycle, from site selection to operations. The company boasts a substantial project pipeline, with 30 GWp of solar and 94 GWh of battery storage, capable of providing clean, reliable power to approximately 20 million people. Avantus has a strong presence and a successful track record in the southwestern U.S. and California power markets, renowned for their high-quality development opportunities. Since its inception, Avantus has developed and sold 6.5 GWp and 6.3 GWh of solar and storage projects, respectively.
Avantus stands to benefit from significant market trends driving renewable energy development in the United States. As per BloombergNEF, there is a pressing need for a substantial increase in investment to align with global climate goals, with renewable energy and power grids expected to attract the largest share of energy transition spending.
Charlie Gailliot, Partner and Co-Head of Global Climate Strategy at KKR, expressed confidence in Avantus’ potential, citing the company’s strong team, development track record, and mature project pipeline. Cecilio Velasco, Managing Director in KKR’s Infrastructure team, highlighted KKR’s commitment to leveraging its resources and expertise to accelerate Avantus’ growth and contribute to the transition towards sustainable energy solutions.
Blair Thomas, Chairman and CEO of EIG, commended Avantus’ position as a leading renewables developer in the U.S., emphasizing the company’s role in advancing the industry and expanding access to clean energy. Avantus’ Chief Financial Officer, Patrick Goff, welcomed KKR’s investment, noting its significance in supporting the company’s ambitious portfolio and leadership in driving the energy transition across the Western United States.
Post-transaction, KKR plans to establish an equity ownership program for all Avantus employees, aiming to foster greater employee engagement and ownership. With extensive experience in infrastructure investing and a dedicated focus on renewable energy and climate-related investments, KKR is funding the investment through its global climate strategy.
Jefferies LLC acted as the sole financial advisor to KKR, while KKR Capital Markets and Sumitomo Mitsui Banking Corporation (SMBC) served as the lead structuring agents and arrangers of a development financing facility for the company. Scotiabank provided financial advisory services to Avantus.
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