Macquarie Asset Management (MAM), DESRI, and the D. E. Shaw group have announced that MAM has agreed to acquire a significant minority stake in renewable energy company DESRI through a number of MAM-managed funds.
These funds include the Macquarie Global Infrastructure Fund (MGIF), the Macquarie Green Energy and Climate Opportunities Fund (MGECO), and the Macquarie Energy Transition Infrastructure Fund International (METI).
DESRI focuses on the development, ownership, and operation of utility-scale solar, wind, and battery storage projects across the US.
This investment, amounting to up to approximately $1.725bn, aims to support DESRI’s continued growth and bolster its position as a market leader in the renewable energy sector.
DESRI’s platform currently boasts more than 6 GWAC of gross capacity across projects that are either operational or under construction, along with 4 GWAC of contracted projects in pre-construction and a development pipeline exceeding 25 GWAC.
The company is active throughout all phases of a project’s life cycle, encompassing development, construction, and operations.
Furthermore, DESRI holds long-term power purchase agreements (PPAs) with a diverse range of offtakers, including corporations, utilities, and cooperatives, across 24 states. The DESRI platform will complement MAM’s existing 12 GWAC of operational project capacity.
Macquarie Asset Management – Real Assets senior managing director Christopher Frost said: “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.
“This transaction underscores MGIF’s objective of expanding our global portfolio of diversified core infrastructure assets.”
DESRI CEO David Zwillinger said: “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.
“And I’m excited for us to build on that foundation in partnership with Macquarie, a recognized leader in renewables, to further accelerate our growth in this exciting space.”
Lazard acted as financial advisor, while King & Spalding provided legal counsel to MAM.
The transaction is subject to customary closing conditions, including regulatory approvals.
