KKR has signed a deal to acquire Australian independent power producer Zenith Energy, reinforcing its commitment to infrastructure and renewable energy investments in the Asia-Pacific region.
The acquisition will see KKR purchase Zenith from a consortium comprising Pacific Equity Partners, OPSEU Pension Trust, and Foresight Group. Zenith’s founder and management team will retain a minority stake. Financial terms of the transaction were not disclosed.
Zenith provides hybrid power solutions for remote mining operations and urban microgrids, with more than 710 megawatts of contracted capacity across about 15 sites in Australia. The company plays a key role in powering the country’s off-grid mining sector and has operated for over 18 years.
The transaction follows Zenith’s completion of a A$1.9 billion refinancing, which expanded its bank debt facilities and provided over A$1 billion in growth capital. A portion of this includes green loan facilities to support renewable energy projects and lower-emission technologies.
KKR is making the investment through its Asia Pacific Infrastructure Investors II Fund. The deal adds to the firm’s growing renewables portfolio, which includes Spark Infrastructure in Australia, First Gen in the Philippines, Hero Future Energies and Virescent Renewable Energy Trust in India, and Aster Renewable Energy in Taiwan.
KKR’s infrastructure platform in the region now manages approximately US$13 billion in assets. The Zenith transaction is expected to close in late 2025, subject to regulatory approvals.
Business News Asia
