Ares Mgmt. Corporation funds and other accounts managed by its Infrastructure and Power strategy have agreed to acquire a majority stake in Apex Clean Energy. The renewable energy developer announced it this Wednesday.
The transaction will close before the end of 2021, as it is still subject to customary approvals. After the acquisition, all Apex’s existing management team will continue to lead the company. However, the transaction will help Apex secure equity growth capital as it seeks to transition to a pure-play renewable energy independent power producer (IPP).
Moreover, the relationship of the parties goes way back. Firstly, the company has commercialized more than $9 billion of utility-scale projects to date. It also has a leading and diversified clean energy portfolio with more than 30 GW in development.
In addition, the company has transacted with utilities, the commercial and industrial (C&I) market, and also the global financial institution market. Consequently, funds managed by Ares transacted in numerous projects. Indeed, Apex has been a leader in clean energy sales to the C&I market for over a decade.
Furthermore, some of the projects Ares and Apex transacted are the 525 MW Aviator Wind, the largest single-phase, single-site wind farm in the United States; the 302 MW Lincoln Land Wind, and the 121 MW Ford Ridge Wind. As a result, the relationship of both companies provided a platform for the current transaction.
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Capital injected by Ares Mgmt. to serve Apex expand into storage and other businesses
About the matter, Keith Derman, Partner, and Co-Head of Ares’ Infrastructure and Power strategy, said. “There is a deep, long-standing relationship between Ares and Apex, which gives us great confidence and excitement about this opportunity.”
About the relevance of the acquisition for Apex, Mark Goodwin, President, and CEO, said. “Apex has grown over the past decade to meet this moment, and the infusion of growth capital provided by this agreement will allow the company to strengthen its leadership position in U.S. utility-scale clean energy development.”
The executive further commented that the capital would help the company to accelerate its expansion. Apex would expand into the energy storage, distributed energy resources, and also green fuels realms.
On the other hand, Lazard served as a lead financial advisor, and CohnReznick Capital served as a financial advisor to Apex. Additionally, Orrick, Herrington & Sutcliffe LLP served as outside counsel to Apex, while Nomura Greentech served as a financial advisor, and Kirkland & Ellis LLP served as outside counsel to Ares.
Finally, some of the accounts and consortium investors on the acquisition are EGCO Group, Varma Mutual Pension Insurance Company; Menora Mivtachim Group; also, investors represented by Morgan Stanley Investment Management’s Portfolio Solutions Group.