KKR, a global investment firm, has signed definitive agreements to acquire Zenith Energy, an independent power producer, from a consortium that includes Pacific Equity Partners, OPSEU Pension Trust, and Foresight Group.
According to the agreements, Zenith’s founder and management will retain a minority stake in the company. KKR is making this investment from its Asia Pacific Infrastructure Investors II Fund, and the transaction is expected to close in late 2025, subject to customary regulatory approvals.
Zenith delivers hybrid power solutions for remote, off-grid resource sector clients and urban microgrids for commercial, industrial, and residential precincts. The company claims to provide services for Australia’s off-grid mining industry and states that it has more than 710 MW of contracted capacity across 15 sites, secured under long-term contracts.
The acquisition is expected to further position Zenith for sustained long-term growth, supported by favorable sector fundamentals and macro tailwinds.
“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. Zenith has established itself as one of the clear leaders in deploying and managing hybrid power solutions in Australia, a priority market for KKR in Asia Pacific,” said Andrew Jennings, Managing Director and Head of Australia & New Zealand (ANZ) Infrastructure, KKR.
The acquisition follows Zenith’s completion of an A$1.9 billion (~$1.2 billion) refinancing and upsizing of its existing bank debt facilities. The increased limit provides the company with more than A$1 billion (~$640 million) of growth capital from several lenders to support the development of new projects.
According to Mercom’s Q1 2025 Solar Funding and M&A report, a total of 19 solar corporate M&A transactions were recorded in Q1 2025, compared to 20 transactions in Q4 2024, and 10% lower than the 21 solar M&A transactions in Q1 2024.
Recently, Partners Group, a private equity firm, agreed to acquire PowerTransitions, a utility-scale project developer in the U.S., from EnCap Investments.