Macquarie Asset Management (MAM), DESRI, and the D. E. Shaw group announced that MAM has agreed to acquire a significant minority stake in DESRI via several MAM-managed funds. These funds include Macquarie Global Infrastructure Fund (MGIF), Macquarie Green Energy and Climate Opportunities Fund (MGECO), and Macquarie Energy Transition Infrastructure Fund International (METI).
DESRI is a leading renewable energy company that develops, owns, and operates utility-scale solar, wind, and battery storage projects throughout the US. And this investment of up to approximately $1.725 billion is intended to enable DESRI to continue its growth and enhance its market-leading position.
DESRI’s platform currently has 6+ GWAC of gross capacity for projects in operations or under construction, 4 GWAC of contracted pre-construction projects, and a development pipeline of 25+ GWAC. And the company operates across all stages of a project’s life cycle, including development, construction, and operations. Additionally, DESRI has long-term power purchase agreements (PPAs) in place with a diversified base of offtakers, including corporates, utilities, and co-ops in 24 states. The DESRI platform will complement MAM’s 12 GWAC of operational project capacity.
Lazard served as financial advisor and King & Spalding served as legal advisor to MAM. Goldman Sachs served as financial advisor and Skadden, Arps, Slate, Meagher & Flom served as legal advisor to DESRI.
The deal is subject to closing conditions, including regulatory approvals.
KEY QUOTES:
“We are excited to invest in DESRI, an energy transition platform of scale with a proven, highly-regarded management team and a large base of operating assets which we expect will grow over the medium term through the successful completion of late-stage projects. This transaction underscores MGIF’s objective of expanding our global portfolio of diversified core infrastructure assets.”
-Christopher Frost, Senior Managing Director, Macquarie Asset Management – Real Assets
“I’m grateful to the D. E. Shaw group and to our remarkable DESRI team, who have enabled us to build a strong business over more than a decade. And I’m excited for us to build on that foundation in partnership with Macquarie, a recognized leader in renewables, to further accelerate our growth in this exciting space.”
-David Zwillinger, Chief Executive Officer of DESRI
“We appreciate Macquarie’s confidence in DESRI and are excited for DESRI’s continued growth in renewable energy development. We commend DESRI’s leadership team for the outstanding business they’ve built and look forward to continued value creation in collaboration with Macquarie.”
-Julius Gaudio, D. E. Shaw group Managing Director
“With the growth of the renewable energy market, suppliers and customers are seeking trusted partners that can scale and consolidate the market. We believe that this partnership with DESRI well-positions Macquarie Asset Management to capture this opportunity and help accelerate the transition to net zero.”
-William Demas, Head of Macquarie Asset Management Green Investments for the Americas
