Quinbrook Infrastructure Partners, a specialist global investment manager focused exclusively on the infrastructure needed for the energy transition, announced the successful closing of Quinbrook Valley of Fire Fund with $600 million in capital commitments from US and European institutional investors. This Fund is a continuation of the large-scale solar+storage strategy of Quinbrook’s Low Carbon Power Fund (LCPF).
Quinbrook’s Valley of Fire Fund has acquired 51% of the Gemini Solar + Storage project and 100% of the remaining Valley of Fire project development portfolio (VoF) from the LCPF and other equity holders. Blackstone Strategic Partners is the lead investor in the Quinbrook Valley of Fire Fund.
This transaction has delivered an exceptional return on investment for LCPF investors while creating a new growth platform to provide primary capital commitments to fund the continued development and construction of several large-scale solar + storage projects in the VoF portfolio.
Gemini (located just outside of Las Vegas, Nevada) is one of the most significant solar + storage projects in the US, and it is now operational under a 25-year off-take contract. And with 690 MWac of solar + a 1,416 MWh battery storage facility, Gemini is expected to create enough clean energy to power 260,000 homes during super peak periods and displace 1.5 million metric tons of carbon dioxide annually. In 2022, APG acquired 49% equity ownership in the Gemini project on behalf of its pension fund client ABP.
The Valley of Fire portfolio comprises seven projects totaling over 2.65GW of solar PV capacity, potentially adding a further 1.5GW of battery storage capacity. The projects span Nevada, Colorado, and Arizona, ranging from early to late-stage development.
Quinbrook portfolio company Primergy Solar manages the portfolio’s ongoing development and recently signed a long-term Power Purchase Agreement for the full capacity of the most advanced stage project, the Purple Sage Energy Center. This 400 MWac solar and 1.6 GWh battery energy storage project is located in Nevada, between Las Vegas and the California state border. And the offtake customer is San Diego Community Power.
PJT Partners acted as the lead financial advisor on the transaction. Kirkland & Ellis served as legal counsel to Quinbrook, while Proskauer Rose served as legal counsel to Blackstone Strategic Partners.
KEY QUOTES:
“This successful closing underscores Quinbrook’s commitment to impactful renewable energy project development and new asset creation and its track record of pursuing strategies that seek to optimize returns for investors wanting differentiated exposure to the energy transition. The decision to pursue a GP-led secondary transaction reflects our commitment to enhancing value for our LPs, while continuing to support the development of a distinct portfolio of landmark renewables assets. We are excited to welcome such well known and respected investors to Quinbrook, including lead investor Blackstone Strategic Partners and cornerstone investor Ares Management Infrastructure Secondaries funds.”
– Rory Quinlan, Co-founder and Managing Partner of Quinbrook Infrastructure Partners
“Energy transition is a major theme for Blackstone and we are excited to invest with Quinbrook and Primergy.”
– Mark Bhupathi, Head of Blackstone Infrastructure Secondaries
