KKR leads $450m investment in India's Hero Future Energies
KKR has led a USD 450m investment in Indian renewable energy company Hero Future Energies (HFE), with parent company Hero Group also participating.
Transaction details in terms of allocations were not disclosed, but KKR was said to be in advanced negotiations to make a USD 400m commitment last month, according to The Economic Times.
If the figure is correct, it could be KKR’s largest ever single investment in clean energy. The private equity firm is deploying via its Asia Pacific Infrastructure Fund, which closed on USD 3.9bn last year.
Established in 2012, HFE is an independent power producer with a presence in various states in India, as well as Bangladesh, Vietnam, Singapore, Ukraine, and the UK. The company has about 1.6 gigawatts of operating assets across the utility, commercial, and industrial sectors.
Previous backers include the International Finance Corporation, which provided USD 50m in 2020 and USD 125m in 2016. Masdar Capital, the VC arm of United Arab Emirates-based Masdar Clear Energy, invested USD 150m in 2019.
HFE plans to invest progressively in grid-connected solar and wind, rooftop sectors, energy storage, and green hydrogen over the next few years in India and internationally. It also aims to support other companies in their efforts to decarbonise and transition towards sustainable energy sources to achieve their net zero emission goals.
KKR described the investment as part of an agenda to help accelerate India’s energy transition. This includes plans to expand renewable energy capacity, reduce carbon emissions by 1bn tons by 2030, and achieve net-zero emissions by 2070. It said private capital would be a key enabler of these targets.
KKR has deployed more than USD 15bn in equity in the renewables space since 2011. In 2020, the firm set up Virescent Infrastructure, a platform to own and operate renewable assets in India. In 2022, it launched Aster Renewable Energy, a platform for solar, wind, and energy storage projects in Taiwan and Vietnam.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.