Global private equity giant KKR has agreed to acquire Zenith Energy, one of Australia’s largest independent power producers, for an undisclosed amount, according to an announcement on Tuesday.
The transaction will see KKR acquire the power producer from a consortium that includes Pacific Equity Partners, OPSEU Pension Trust, and Foresight Group. Per the announcement, Zenith’s founder and management team will retain a minority stake.
The consortium acquired Zenith Energy for an enterprise valuation of A$250 million in 2020.
Founded in 2006, Zenith supplies hybrid renewable energy systems to remote mining operations and urban precincts, operating more than 710 megawatts of contracted capacity across 15 sites. Its customers include some of Australia’s largest resource sector players.
“The investment by KKR will accelerate our growth and ability to service large-scale projects with a broad capital base,” said Hamish Moffat, Zenith’s CEO and managing director.
Moffat noted that the decarbonisation of Australia’s mining sector presents significant and immediate opportunities, adding that Zenith is positioned to lead this transition through large-scale, high-penetration hybrid power projects.
The transaction is expected to close by the end of 2025, subject to regulatory approvals.
The acquisition follows Zenith’s recent A$1.9 billion ($1.2 billion) refinancing, which increased its available capital to over A$1 billion, partly through green loan facilities, to fund new clean energy projects.
KKR is investing through its Asia Pacific Infrastructure Investors II Fund, which forms part of its growing $13 billion regional infrastructure platform. The said fund closed at $6.4 billion last year.
The firm has made a string of energy transition investments across the region, including Spark Infrastructure in Australia, Virescent Renewable Energy in India, First Gen in the Philippines, and Aster Renewable Energy in Taiwan.
KKR’s managing director and head of Australia & New Zealand Infrastructure, Andrew Jennings, said Zenith’s leadership in hybrid power solutions and its strong relationships with high-quality partners made it a strategic fit for the firm’s Asia Pacific infrastructure platform.
He noted that Australia remains a priority market for KKR and expressed confidence in supporting Zenith’s next phase of growth as it taps into rising demand for off-grid renewable energy.
“We look forward to supporting Zenith and its management team over the next stage of growth and helping them capitalise on the significant opportunity for off-grid renewable power,” Jennings said.
The acquisition comes as KKR is said to be raising its third and largest Asia infrastructure fund, with a targeted corpus exceeding $9 billion. The firm, according to a Mint report, has already secured commitments for the fund’s first close.
