Key Takeaways
- KKR acquired Pacific Equity Partners (PEP), OPTrust, Foresight Group for $1.1B.
- Sector: Energy Infrastructure & Renewables.
- Geography: Australia.
Analysis
KKR has signed definitive agreements to purchase Zenith Energy, Australia’s largest independent power producer for remote and off-grid mining operations.
The transaction sees KKR buy out shareholders Pacific Equity Partners, OPTrust and Foresight Group, while Zenith’s founder and management will retain a minority stake. The deal will be funded through KKR’s Asia Pacific Infrastructure Investors II vehicle and is expected to close in late 2025, pending regulatory approvals.
Established in 2006, Zenith delivers hybrid power systems that combine renewable and thermal technologies for mine sites, urban microgrids and industrial precincts. The company now operates more than 710 MW of contracted capacity across roughly 15 Australian sites, all under long-term agreements.
KKR cited Zenith’s “front-row position in Australia’s energy transition” and its long-standing relationships with tier-one mining clients as core reasons for the investment. Zenith’s CEO Hamish Moffat said KKR’s backing and balance-sheet strength would accelerate large-scale hybrid projects that decarbonise the resources sector.
The deal follows Zenith’s recent A$1.9 billion refinancing and upsizing of its bank facilities, which provided more than A$1 billion in additional growth capital, including a green-loan tranche to support renewable deployments.
KKR’s infrastructure platform now manages approximately US$13 billion in Asia-Pacific assets, with previous regional renewable-energy investments including Spark Infrastructure (Australia), Virescent Renewable Energy Trust (India) and Hero Future Energies.