Funds managed by the infrastructure and power strategy of Ares Management have announced a equity investment of up to $600m in SB Energy Global.

SB Energy is the US-based utility scale solar, energy storage, and technology platform backed by SoftBank Group.

Ares-managed funds have committed to provide the majority of the financing, while the remaining equity investment is expected from undisclosed co-investors.

With the investment, the two technology and climate infrastructure investors are expected to jointly advance the deployment of clean energy at scale.

SoftBank Group international CEO Michel Combes said: “Our new investment from Ares brings together Ares’ climate infrastructure experience, SoftBank’s AI and technology ecosystem, and SB Energy’s track record of execution into a single platform to deliver flexible renewable energy at scale.”

Established in 2019, SB Energy operates as the US Climate Infra-Tech platform of SoftBank, with plans to deliver 10GW of renewable energy and storage projects by the end of 2025.

The company has completed the development and commenced the construction on nearly 1.7GW of utility-scale solar projects, including 1.3GW of projects completed in Texas and California.

In addition to capital from SoftBank and Ares, SB Energy has partnered with certain financial institutions to secure more than $4bn in tax equity and project financing.

Milbank served as outside counsel to SB Energy, Kirkland & Ellis to the Ares-managed funds, and Morrison & Foerster to SoftBank, on the transaction.

Ares Infrastructure and Power partner and co-head Andrew Pike said: “Our investment in SB Energy builds on our existing relationship and reflects our focus on supporting high-quality climate infrastructure platforms through our innovative capital solutions.”

Ares Infrastructure and Power partner Mike Roth said: “Ares and SB Energy share a commitment to accelerating the transition to a low carbon economy through the development of essential climate infrastructure assets.

“With the added support of Ares’ flexible capital, SB Energy is well-positioned to meet the growing demand for sustainable clean energy and build on its strong track record, including having brought online nearly 2 GW of solar in just two years.”