KKR invests in Zenith Energy to scale hybrid renewable power for Australia’s off-grid mining sector.
Zenith secures A$1.9B refinancing, including over A$1B in growth capital and green loans.
Deal strengthens KKR’s Asia Pacific infrastructure portfolio, now valued at US$13B.
KKR has signed definitive agreements to acquire Zenith Energy, a top independent power producer in Australia, in a deal aimed at accelerating the delivery of hybrid renewable energy solutions for remote mining and urban microgrids.
The seller consortium includes Pacific Equity Partners, OPTrust, and Foresight Group, while Zenith’s founder and management will retain a minority stake. The acquisition will be made through KKR’s Asia Pacific Infrastructure Investors II Fund.
“Zenith’s position at the forefront of the energy transition, coupled with its long-term relationships with strategic, high-quality counterparties, make it an ideal investment for our Asia Pacific infrastructure platform,” said Andrew Jennings, Managing Director and Head of ANZ Infrastructure at KKR.
Zenith delivers sustainable power solutions to off-grid mining operations and commercial precincts, with 710MW of contracted capacity across ~15 sites. The company plays a critical role in powering Australia’s remote resource sector, which is under increasing pressure to decarbonise.
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“There are significant and immediate opportunities inherent in the decarbonisation of Australia’s mining sector, which Zenith is uniquely positioned to deliver via large-scale, high-penetration hybrid power projects,” said Hamish Moffat, CEO of Zenith.
Ahead of the transaction, Zenith secured A$1.9 billion in refinancing and upsizing of its debt facilities, unlocking over A$1 billion in growth capital. A portion of this capital includes green loan facilities, reinforcing Zenith’s focus on supporting Australia’s energy transition.
This acquisition adds to KKR’s renewables portfolio in Asia Pacific, which includes Spark Infrastructure (Australia), Virescent Renewable Energy Trust (India), Hero Future Energies, First Gen (Philippines), and Aster Renewable Energy (Taiwan).
The deal is expected to close by late 2025, pending regulatory approvals.
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