KKR to acquire Australia’s Zenith Energy from consortium

Investment firm KKR has signed definitive agreements to acquire Australia-based Zenith Energy from a consortium of Pacific Equity Partners, Canada's OPSEU Pension Trust (OPTrust) and the Foresight Group.

The strategic partnership will enhance Zenith’s ability to expand renewable and hybrid energy solutions throughout Australia’s most remote and energy-intensive sectors.

Zenith is an independent power producer focusing on sustainable and dependable hybrid power solutions for remote, off-grid clients in the resource sector, as well as urban microgrids for commercial, industrial and residential areas.

The company plays a vital role in supporting Australia’s extensive off-grid mining industry and has built a robust reputation over its 18 years of operation.

It currently offers more than 710MW of contracted capacity across 15 sites, all secured through long-term agreements.

KKR is executing the acquisition through its Asia Pacific Infrastructure Investors II Fund.

The transaction marks an expansion by the company into the renewable energy sector as it continues to grow its global infrastructure portfolio.

KKR Australia and New Zealand (ANZ) infrastructure managing director and head Andrew Jennings stated: “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. We look forward to supporting Zenith and its management team over the next stage of growth and helping them capitalise on the significant opportunity for off-grid renewable power.”

The acquisition follows Zenith's recent A$1.9 billion ($1.24 billion) refinancing and upsizing of existing debt facilities, which provided more than A$1 billion in growth capital from various lenders to support new project development within Australia’s resource sector.

The deal is expected to close by late 2025, pending regulatory approvals.

Zenith Energy CEO and managing director Hamish Moffat stated: “We are excited by the opportunity presented by KKR’s investment in the company and its strategy, which is a strong validation of Zenith’s capabilities and competitive edge. The investment by KKR will accelerate our growth and ability to service large-scale projects with a broad capital base.

“Today’s announcement positions the company to continue providing our distinct value proposition via these unique remote energy solutions to our existing clients, while enabling us to pursue a robust pipeline of new opportunities as Australia’s mining sector intensifies its decarbonisation efforts.”