Funds managed by Apollo Global Management‘s affiliates formed a joint venture with Altius Minerals, a subsidiary of Altius Renewable Royalties, to accelerate the growth of Great Bay Renewables, an Altius subsidiary and provider of renewable energy development capital.
Apollo Funds expect to invest up to $200 million and will have the opportunity to acquire up to a 50% stake in Great Bay, the proceeds of which will be used by Great Bay to invest in renewable energy development platforms in North America.
Formed in 2017, Great Bay provides strategic capital to renewable energy developers via a proprietary royalty structure that can be applied to all stages of a renewable project’s life cycle. The company is led by Frank Getman, president and CEO, and a management team with experience in renewable energy development, financing and operations across a range of renewable technologies and asset types.
Apollo joined the teams at Great Bay and Altius in seeing opportunities to invest in wind, solar and energy storage projects in the U.S. and Canada over the next decade. Since inception, Great Bay has invested more than $60 million in developers such as Apex Clean Energy and Tri Global Energy, which together are advancing more than 18 gigawatts of wind and solar projects.
“Demand for renewable energy and storage continues to increase with the ongoing energy transition, and the Great Bay team has established itself as an ideal partner to help companies finance these critical endeavors,” Geoffrey Strong, senior partner and co-head of infrastructure and natural resources at Apollo, said. “Our longstanding track record in renewable energy within our infrastructure business along with our familiarity and expertise in royalties gives us great confidence in establishing this new joint venture with Great Bay and Altius.”
“Teaming up with Apollo adds incredible expertise and financial horsepower to help advance the adoption of our innovative renewable royalty financing. New and innovative forms of capital such as our renewable royalty product will be required as the pace of renewable energy adoption accelerates and we transition to a clean energy future,” Getman said.
“The team at Apollo stood out during our search for a strategic partner in terms of their depth of industry knowledge, like-minded vision for the future, technical and financial evolution of the renewable energy sector as well as the spirit of partnership and cooperation that they brought to the table. We are very excited to work together to rapidly scale the business and help accelerate the growth of the renewable energy sector through innovative royalty partnerships,” Brian Dalton, CEO of Altius, said.
“We are excited to work with Frank, Brian, and the entire Great Bay team to offer attractive capital that will accelerate production of renewable energy and help major corporations, states, and cities to reach their ambitious sustainability goals.” Corinne Still of Apollo, said.