Alternative asset and private equity investor KKR has announced an agreement to acquire the Australia-based independent power producer (IPP), Zenith Energy.
Established in 2006, Zenith ranks among Australia’s largest IPPs, specialising in sustainable and reliable hybrid power solutions for remote, off-grid resource sector clients, as well as urban microgrids for commercial, industrial, and residential areas. The company plays a significant role in serving Australia’s off-grid mining industry.
Zenith boasts more than 710MW of contracted capacity spanning approximately 15 sites, secured under long-term agreements. Recently, the company completed a A$1.9 billion (£1 billion) refinancing and upsizing of its current bank debt facilities, securing over A$1 billion for growth capital to support the development of new projects.
Hamish Moffat, Zenith’s CEO and Managing Director, commented, “The investment by KKR will accelerate our growth and ability to service large-scale projects with a broad capital base. There are significant and immediate opportunities inherent in the decarbonisation of Australia’s mining sector, which Zenith is uniquely positioned to deliver via large-scale, high penetration, hybrid power projects. Today’s announcement positions the company to continue providing our distinct value proposition via these unique remote energy solutions to our existing clients, while enabling us to pursue a robust pipeline of new opportunities as Australia’s mining sector intensifies its decarbonisation efforts.”
This acquisition is the latest in a series of energy transition and sustainable infrastructure-focused deals for KKR. It follows KKR’s identification in December 2023 of decarbonisation and the large-scale “brown-to-green” transition of asset-heavy sectors as a key “mega-theme” driving investment opportunities.
KKR is acquiring Zenith through its Asia Pacific Infrastructure Investors II Fund, purchasing from an investor consortium comprising Pacific Equity Partners, OPSEU Pension Trust, and Foresight Group. Zenith’s founder and management will retain a minority stake in the company.
Andrew Jennings, Managing Director and Head of Australia & New Zealand (ANZ) Infrastructure at KKR, stated, “Zenith has established itself as one of the clear leaders in deploying and managing hybrid power solutions in Australia, a priority market for KKR in Asia Pacific. 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.”
