KKR, a leading global investment firm, has announced that it has signed definitive agreements to acquire Zenith Energy, a prominent independent power producer based in Australia. The acquisition is being made from a consortium of investors that includes Pacific Equity Partners, OPSEU Pension Trust, and Foresight Group. As part of the transaction, Zenith’s founder and existing management team will retain a minority ownership stake. This investment is expected to strengthen Zenith’s position for long-term growth, supported by favorable industry trends and macroeconomic conditions.
Zenith Energy specializes in delivering reliable and sustainable hybrid power solutions. The company caters primarily to remote, off-grid clients in Australia’s resource sector, while also serving urban microgrids across commercial, industrial, and residential precincts. With over 18 years of operational experience, Zenith has established itself as a key player in the country’s power infrastructure, particularly in supporting the large off-grid mining industry. The company currently operates more than 710 megawatts (MW) of contracted capacity across approximately 15 sites, all secured under long-term agreements.
This announcement follows Zenith’s recent completion of a AUD 1.9 billion refinancing and expansion of its existing bank debt facilities. The revised arrangement provides the company with over AUD 1 billion in growth capital, which will be used to support the development of new energy projects. Notably, a portion of the funding includes green loan facilities, reflecting Zenith’s commitment to Australia’s energy transition by enabling the delivery of renewable technologies and lower-emission energy solutions for mine sites.
Andrew Jennings, Managing Director and Head of Australia & New Zealand (ANZ) Infrastructure, KKR, said in a statement, “Zenith’s position at the forefront of the energy transition, coupled with its long-term relationships with strategic, high-quality counterparties, make it an ideal investment for our Asia Pacific infrastructure platform. Zenith has established itself as one of the clear leaders in deploying and managing hybrid power solutions in Australia, a priority market for KKR in Asia Pacific. We look forward to supporting Zenith and its management team over the next stage of growth and helping them capitalize on the significant opportunity for off-grid renewable power.”
Zenith’s CEO and Managing Director, Hamish Moffat, mentioned, “We are excited by the opportunity presented by KKR’s investment in the company and its strategy, which is a strong validation of Zenith’s capabilities and competitive edge. The investment by KKR will accelerate our growth and ability to service large scale projects with a broad capital base. There are significant and immediate opportunities inherent in the decarbonisation of Australia’s mining sector, which Zenith is uniquely positioned to deliver via large-scale, high penetration, hybrid power projects. Today’s announcement positions the company to continue providing our distinct value proposition via these unique remote energy solutions to our existing clients, while enabling us to pursue a robust pipeline of new opportunities as Australia’s mining sector intensifies its decarbonisation efforts.”
KKR is making this acquisition through its Asia Pacific Infrastructure Investors II Fund. The firm has a strong track record in the renewable energy sector and has made several strategic investments aligned with the energy transition theme. These include investments in Spark Infrastructure, which owns regulated electricity networks in Australia; Virescent Renewable Energy Trust in India; Hero Future Energies, a global renewable power company; First Gen, a clean energy provider in the Philippines; and Aster Renewable Energy in Taiwan. Since its inception in 2019, KKR’s Asia Pacific infrastructure platform has grown to approximately USD 13 billion in assets under management. The transaction is expected to close in late 2025, subject to customary regulatory approvals.
