Funds managed by affiliates of Apollo Global Management and GE Capital entered into a definitive agreement for the Apollo Funds to acquire an approximately $1 billion portfolio, including assumed obligations, of predominantly equity investments in energy assets from GE Capital’s Energy Financial Services unit. The Equity Portfolio comprises approximately 20 investments in renewable energy, contracted natural gas fired generation and midstream energy infrastructure assets, primarily in the U.S. In connection with this transaction, the parties will seek to form an ongoing relationship with respect to select future new energy infrastructure investments. Financial details of the transaction were not disclosed.
Alec Burger, president of GE Capital, said, “The sale of this equity portfolio reflects ongoing progress executing GE Capital’s strategy, and enables us to continue to deliver on our commitments and provide value to GE. The Apollo Funds are an ideal buyer for these assets with a disciplined investment approach and experience managing complex alternative investments.”
GE Energy Financial Services continues to use its expertise to invest in and structure third party financial solutions for GE’s power and renewable energy customers, globally.
“We believe this transaction provides us with a unique opportunity to acquire a diversified portfolio of high-quality energy infrastructure assets with attractive risk-adjusted return profiles,” said Geoffrey Strong, senior partner at Apollo. “In addition, we look forward to working with GE’s team on future energy infrastructure investment opportunities.”
The completion of the acquisition is subject to customary conditions and is expected to close in the fourth quarter of 2018. Bank of America Merrill Lynch and PJT Partners provided financial advice, and Gibson Dunn & Crutcher and Latham & Watkins, provided legal advice to GE Capital.
Citigroup Global Markets served as lead financial advisor and RBC Capital Markets and Goldman Sachs also served as financial advisors to Apollo. RBC Capital Markets, Goldman Sachs and Bank of Montreal provided financing to Apollo for the transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP, Milbank, Tweed, Hadley & McCloy LLP, and Vinson & Elkins served as Apollo’s legal advisors.