Ares Management Corporation has finalised the acquisition of a 49% minority stake in a portfolio of energy assets from EDP Renováveis, S.A., a global developer and operator of energy infrastructure. The portfolio represents a total generation capacity of 1,632 megawatts (MW) and includes solar, wind and storage projects spread across four US power markets. The total enterprise value for the portfolio is estimated at approximately $2.9bn.
The investment was made through a fund managed under the Ares Infrastructure Opportunities strategy. The ten projects consist of 1,030 MW of solar, 402 MW of wind, and 200 MW of energy storage. Each asset benefits from long-term Power Purchase Agreements (PPAs), with an average remaining contract duration of 18 years, offering stable and predictable revenue streams.
A stable portfolio in a fragmented market
The diversified nature of the portfolio and the existence of long-term contracts were key factors in Ares’ investment decision. The transaction aligns with a broader strategy to expand the fund’s presence in the US energy market while limiting operational exposure.
Since September 2024, the fund has taken equity interests in power generation assets totalling approximately 5.7 gigawatts (GW) of installed capacity across 11 US states. This latest acquisition underscores Ares’ focus on critical infrastructure supported by stable contractual commitments and managed by experienced industrial operators.
A capital partnership without control transfer
EDP Renováveis retains operational control and majority ownership of the assets, while Ares gains economic rights to nearly half of the revenues generated. This co-investment model allows for the pooling of financial resources without diluting operational expertise.
Both entities highlight the complementarity between EDPR’s industrial capabilities and Ares’ investment capacity. This form of partnership provides a platform to accelerate the deployment of new energy capacity while optimising capital allocation for both parties.
