KKR’s Investment With NextEra in a 1,192 megawatts Renewable Energy Portfolio

Kirkland & Ellis advised KKR on the deal

KKR signed a definitive agreement with NextEra Energy Partners, LP (NYSE: NEP or “NEP”) to acquire an equity interest in a newly-formed partnership with NEP that owns a geographically diverse portfolio of ten utility scale wind and solar projects across the United States, collectively consisting of approximately 1,192 megawatts.

KKR has a track-record of investing in renewable energy, with significant capital deployed in renewable assets including more than 4 GW of installed renewable capacity. KKR invests in infrastructure assets on a global basis, with $12.6 billion in assets under management within its Infrastructure strategy.

KKR’s investment will be in the form of an equity interest in a newly-formed structured partnership with NEP in which NEP has certain rights to acquire KKR’s interest over time at pre-determined return levels between 3.5 and 7.0 years after the formation of the partnership. KKR’s share of partnership cash flows increases to 99% in the event that such call options are not exercised within certain milestones. KKR’s $900 million investment will be funded via a mix of new term loan financing and equity from its third Global Infrastructure Investors fund, which closed in September 2018 with $7.4 billion in commitments.

The Kirkland team was led by transactional partners John Pitts (Picture) and Jhett Nelson and associates David Thompson and Patrick Moneypenny; debt finance partner Roald Nashi and associates Mark Adler and Osaro Aifuwa; capital markets partner Julian Seiguer; and tax partners Michael Beinus and Sehj Vather.

Involved fees earner: Mark Adler – Kirkland & Ellis; Osaro Aifuwa – Kirkland & Ellis; Michael Beinus – Kirkland & Ellis; Patrick Moneypenny – Kirkland & Ellis; Roald Nashi – Kirkland & Ellis; Jhett Nelson – Kirkland & Ellis; John Pitts – Kirkland & Ellis; Julian Seiguer – Kirkland & Ellis; David Thompson – Kirkland & Ellis; Sehj Vather – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: KKR;

Author: Ambrogio Visconti