Case Studies


KKR’s Sale of Two Solar Portfolios to Goldman Sachs Asset Management

TRANSACTION OVERVIEW

  • On September 28, 2018, KKR completed the sale of the 193 MW SunTap I and SunTap II operating solar portfolios to Goldman Sachs Asset Management
  • The portfolios comprise 10 fully contracted solar photovoltaic projects that began commercial operations from 2011-2014 and are located in California and Arizona

KKR OVERVIEW

  • KKR is a leading global investment firm that manages multiple alternative asset classes with $195bn in assets under management as of December 31, 2018
  • KKR’s infrastructure business has approximately $13bn in assets under management and has completed 25 infrastructure transactions across several subsectors and geographies since 2011
  • Renewable energy is among the top sectors invested across KKR’s global infrastructure strategy, representing 39% and 21% respectively, of KKR’s total investments out of its first and second infrastructure funds

GOLDMAN SACHS ASSET MANAGEMENT OVERVIEW

  • Goldman Sachs Asset Management (“GSAM”), a wholly-owned subsidiary of The Goldman Sachs Group, is a leading, highly diversified global investment management firm with over $1.0tn of assets under supervision as of December 31, 2018
  • Goldman Sachs Renewable Power LLC (“GSRP”), GSAM’s renewables investment arm, has raised ~$1.8bn to date and is focused on owning and operating commercial and industrial (C&I) and small utility-scale solar projects
  • Since inception, GSRP has completed acquisitions of over 450 MW of solar energy projects

GREENTECH’S ROLE

  • Greentech served as exclusive financial advisor to KKR and was closely involved in all aspects of the transaction, including preparation of process materials, buyer outreach, due diligence, transaction structuring, and negotiation of definitive documentation
  • Greentech’s deep industry relationships, renewable energy expertise and extensive transaction experience led to a robust process with significant competitive tension, allowing KKR to maximize value and execution certainty

WHAT THE TRANSACTION MEANS FOR THE RENEWABLE ENERGY SECTOR

  • This transaction illustrates the breadth and depth of demand for contracted renewable energy assets among financial investors
  • The process demonstrated bidders’ willingness to ascribe significant scarcity value to operating projects of scale with long-term, bus bar power purchase agreements with utility counterparties

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