Summit Ridge Energy – an owner and operator of community solar assets – has secured a $175 million strategic investment from Apollo Funds, a global investment management firm.
Vinson&Elkins acted as legal counsel to the Apollo funds in the transaction.
Citibank acted as a legal and financial advisor, and Saul Ewing served as legal counsel to Summit Ridge.
As part of the investment by the Apollo Funds, Apollo Partners Corinne Still and Wilson Handler will join the Summit Ridge Energy Board of Directors. Summit Ridge Energy CEO, Steve Raeder, will continue to serve as the board’s chairman.
Wilson Handler, Apollo Partner, said, “Summit Ridge is an ideal partner for Apollo in the community solar segment as a first mover with a flexible, fully-integrated business model and a proven management team. With this investment, we see a tremendous opportunity to access a high-growth segment of the renewables market while producing positive environmental and social outcomes for local stakeholders. We look forward to working with Steve and the rest of the Summit Ridge team to execute on its current pipeline while exploring additional opportunities to create value.”
Summit Ridge Energy CEO Steve Raeder said, “Summit Ridge is on a strong trajectory, and we are excited to welcome Apollo as a new partner. Apollo’s long track record of sustainable investing, with its operational expertise and significant resources, is an excellent match for Summit Ridge’s fast-paced growth and leading position in the clean energy economy.”
Earlier this year, Apollo launched its Sustainable Investing Platform, which targets to deploy $50 billion in clean energy and climate capital over the next five years. It sees the opportunity to deploy more than $100 billion by 2030.
According to Mercom’s 1H and Q2 2022 Solar and Funding M&A Report in 1H 2022, venture capital (VC) funding activity rose 125% with $3.7 billion in 53 deals compared to the $1.6 billion raised in 26 deals in the first half of 2021. In June 2022, German-based solar startup ENVIRIA raised €22.5 million (~$23.6 million) in a Series A funding round. The round was co-led by Redalpine and Galileo Green Energy. Other investors include BNP Paribas Development and Alter Equity.