Apollo’s Investment in Broad Reach Power

Kirkland & Ellis counseled Apollo, while White & Case advised Broad Reach Power on the deal.

Apollo (NYSE: APO) announced its agreement to use funds managed by Apollo affiliates to acquire a 50 percent stake in Broad Reach Power LLC, a leading utility-scale energy storage and renewable energy platform in the United States. The Apollo Funds will acquire the stake from existing investor EnCap Investments L.P. and its co-investment partners Yorktown Partners and Mercuria Energy.

EnCap and its co-investment partners will retain the other 50 percent stake and, together with the Apollo Funds, commit to invest up to $400 million of additional equity to fund Broad Reach’s continued expansion and growth pipeline.

Broad Reach is a leading energy storage platform in the US, applying advanced energy storage technology and power market analytics to improve the performance of renewable and power generation facilities. The company has more than 1.4 gigawatt hours of storage assets in operation or under construction and controls a 21-gigawatt (“GW”) portfolio of utility-scale wind, solar and energy storage power projects across the country.

Since 1988, EnCap has been the leading provider of venture capital to the independent sector of the US energy industry. The firm has raised 22 institutional investment funds totaling approximately US$38 billion and currently manages capital on behalf of more than 350 US and international investors.

The Kirkland team was led by corporate partners Adam Larson (Picture) and Cy Jones and associate Fernanda Langa; tax partners Mark Dundon and Joe Tobias; and energy regulatory partners Brooksany Barrowes and Marcia Hook.

The White & Case team that advised on the transaction was led by partners Michael Shenberg in New York and Mingda Zhao in Houston.  The team also included associates Hailey Bair in New York; and Leslie Vaughn, Clint Farha and Kabir Phaguda all in Houston.

Involved fees earner: Brooksany Barrowes – Kirkland & Ellis; Mark Dundon – Kirkland & Ellis; Marcia Hook – Kirkland & Ellis; Cyril Jones – Kirkland & Ellis; Fernanda Langa – Kirkland & Ellis; Adam Larson – Kirkland & Ellis; Joe Tobias – Kirkland & Ellis; Hailey Bair – White & Case; Clint Farha – White & Case; Kabir Phaguda – White & Case; Michael Shenberg – White & Case; Leslie Vaughn – White & Case; Mingda Zhao – White & Case;

Law Firms: Kirkland & Ellis; White & Case;

Clients: Apollo Funds (Apollo Global Management); Broad Reach Power;