Apollo Global Management has agreed to acquire a portfolio of nearly $1bn in energy investments of GE Capital’s Energy Financial Services unit.


Image: GE to sell $1bn energy investments portfolio to Apollo Global. Photo: courtesy of General Electric.

The energy investments portfolio to be acquired by funds managed by affiliates of Apollo for an undisclosed amount includes assumed obligations, of mainly equity investments in energy assets.

The equity portfolio features around 20 energy investments across renewable power, contracted natural gas-fired power generation and also midstream energy infrastructure assets, located mainly in the US.

In this regard, Apollo and GE will look to enter into a relationship with respect to certain future new energy infrastructure investments.

GE Capital president Alec Burger said: “The sale of this Equity Portfolio reflects ongoing progress executing GE Capital’s strategy, and enables us to continue to deliver on our commitments and provide value to GE.

“The Apollo Funds are an ideal buyer for these assets with a disciplined investment approach and experience managing complex alternative investments.”

Post transaction, GE Energy Financial Services will continue to invest in and structure third party financial solutions for its parent company GE’s power and renewable energy customers, across the world.

The acquisition of the GE energy investments portfolio by Apollo is anticipated to be completed in the fourth quarter of 2018, should it satisfy customary conditions.

Apollo senior partner Geoffrey Strong said: “We believe this transaction provides us with a unique opportunity to acquire a diversified portfolio of high-quality energy infrastructure assets with attractive risk-adjusted return profiles.

“In addition, we look forward to working with GE’s team on future energy infrastructure investment opportunities.”

In August 2018, GE Capital agreed to divest GE Energy Financial Services’ $2.6bn worth project finance debt business to Starwood Property Trust. The divestiture move was taken up to implement the strategy of the GE energy investments unit to cut down the size of its asset base in support of a streamlined and more focused GE Capital.

The project finance debt business being divested is made up of senior secured debt across thermal power, renewable energy and midstream assets, located mainly in the US.