Alternative asset management firm Ares has announced the creation of Tango Holdings, a new joint venture with Savion Equity, a subsidiary of Shell, to invest in solar power generation in the United States. The new entity is jointly owned by the two firms, with Ares holding an 80% stake and Savion owning 20%.
Savion, established in 2019, has focused on developing large-scale solar and energy storage projects across 28 U.S. states. Tango Holdings will now oversee a portfolio of 496 megawatts of solar projects developed by Savion in Ohio, Kentucky, Oklahoma, and Indiana. Additionally, it will hold equity interests in the Martin County Solar Project, the Kiowa County Solar Project, and three other solar projects currently under construction.
In this joint venture, Savion will serve as the managing member of Tango, while Shell Renewable Asset Management International will be responsible for managing the assets. The deal was structured to sign and close simultaneously, with immediate effect, although further terms were not disclosed.
Over the past year, the Ares fund has acquired interests in power generation assets amounting to more than four gigawatts across nine states and four power markets. Steve Porto, Partner in the Ares Infrastructure Opportunities strategy, stated, “We look forward to partnering with Savion on this exciting initiative that allows us to draw on our combined capabilities in power generation to support these important assets. As a leading investor in critical private infrastructure projects, we believe Ares’ scale and experience across the asset life cycle alongside Savion’s operational prowess will help bolster the supply of electricity in key US markets as we seek to deliver attractive returns for our investors.”
According to Shell, the transaction is part of its strategy to selectively develop renewable generation projects and reduce ownership as they mature. Shell plans to continue developing other onshore renewable power generation assets through Savion’s development pipeline. Greg Joiner, Executive Vice President for Power at Shell, commented, “The investment by Ares is a testament to Savion’s success building and operating assets that deliver renewable power to key energy markets in the USA. Launching Tango with a strategic investment partner like Ares will allow us to maximize the value of our power generation portfolio as we continue to build a more focused, competitive, and adaptive business.”
