Macquarie Asset Management (MAM), DESRI, and the D. E. Shaw group have announced that MAM has agreed to acquire a significant minority stake in DESRI via a number of MAM-managed funds. The MAM-managed funds include Macquarie Global Infrastructure Fund (MGIF), Macquarie Green Energy and Climate Opportunities Fund (MGECO), and Macquarie Energy Transition Infrastructure Fund International (METI). DESRI is a leading renewable energy company that develops, owns, and operates utility scale solar, wind, and battery storage projects throughout the US. This investment of up to approximately US$1.725 billion is intended to enable DESRI to continue its growth and enhance its market-leading position.
DESRI’s platform currently has over 6 GWAC of gross capacity of projects in operations or under construction, 4 GWAC of contracted pre-construction projects, and a development pipeline of over 25 GWAC. The company operates across all stages of a project’s lifecycle, including development, construction, and operations. Additionally, DESRI has long-term power purchase agreements (PPAs) in place with a diversified base of offtakers, including corporates, utilities, and co-ops in 24 states. The DESRI platform will complement MAM’s existing 12 GWAC of operational project capacity.
“We are excited to invest in DESRI, an energy transition platform of scale with a proven, highly-regarded management team and a large base of operating assets which we expect will grow over the medium term through the successful completion of late-stage projects,” said Christopher Frost, Senior Managing Director, Macquarie Asset Management – Real Assets. “This transaction underscores MGIF’s objective of expanding our global portfolio of diversified core infrastructure assets.”
“I’m grateful to the D. E. Shaw group and to our remarkable DESRI team, who have enabled us to build a strong business over more than a decade,” added David Zwillinger, CEO of DESRI. “And I’m excited for us to build on that foundation in partnership with Macquarie, a recognised leader in renewables, to further accelerate our growth in this exciting space.”
“We appreciate Macquarie’s confidence in DESRI and are excited for DESRI’s continued growth in renewable energy development,” commented Julius Gaudio, D. E. Shaw group Managing Director. “We commend DESRI’s leadership team for the outstanding business they’ve built and look forward to continued value creation in collaboration with Macquarie.”
“With the growth of the renewable energy market, suppliers and customers are seeking trusted partners that can scale and consolidate the market,” concluded William Demas, Head of Macquarie Asset Management Green Investments for the Americas. “We believe that this partnership with DESRI well-positions Macquarie Asset Management to capture this opportunity and help accelerate the transition to net zero.”
Lazard served as Financial Advisor and King & Spalding served as Legal Advisor to MAM.
Goldman Sachs & Co. LLC served as Financial Advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as Legal Advisor to DESRI.
The transaction is subject to closing conditions, including regulatory approvals.
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