Ares Management Deepens Renewables Push with $2.9B Portfolio Deal
Acquisition of a 49% stake from EDP Renewables adds 1.6 GW of solar, wind, and battery storage assets across the U.S.
Ares Management has significantly expanded its clean energy footprint, from EDP Renovávies, S.A. (EDPR) for an enterprise value of approximately $2.9 billion. The deal, managed under the firm's Infrastructure Opportunities strategy, deepens the alternative asset manager's investment in the high-growth infrastructure sector and marks a substantial addition to its power generation assets.
The portfolio is comprised of ten assets with a combined capacity of 1,632 megawatts (MW), including 1,030 MW of solar energy, 402 MW of wind power, and 200 MW of battery storage facilities. A key feature of the investment is the stability of its revenue stream; all assets are fully contracted under long-term Power Purchase Agreements (PPAs) with an average remaining duration of 18 years, ensuring predictable cash flow.
Steve Porto, a Partner in Ares' Infrastructure Opportunities strategy, highlighted the strategic value of the deal. 'This represents a compelling opportunity to further diversify our presence across key domestic power markets and growing energy subsectors,' he stated, noting that the firm continues to 'provide capital for high-quality infrastructure assets.'
in which the Ares fund has interests to approximately 5.7 gigawatts across 11 states, solidifying its position as a major player in the U.S. energy transition. For EDPR, the collaboration reinforces its ability to deliver long-term value and expand its own presence in crucial American markets.
While direct analyst commentary on this specific transaction is still emerging, Wall Street has maintained a broadly positive outlook on Ares Management's growth strategy. , with firms like RBC Capital and TD Cowen recently citing growth opportunities beyond the company's core businesses. This acquisition aligns with that view, showcasing Ares' successful expansion into specialized, high-demand sectors like digital infrastructure and renewables.