Apollo Invests $150 Million in FlexGen Power Systems
(Bloomberg) -- Apollo Global Management Inc. is making a $150 million commitment to FlexGen Power Systems Inc. to support the battery energy storage company’s growth plans.
Apollo’s investment will be made in partnership with Durham, North Carolina-based FlexGen’s existing investors, Altira Group and the founding investment group led by Jerry Miller and Mark Dreyfus, according to a statement Wednesday. Since its founding in 2009, FlexGen has supported deployments of more than 1.2 gigawatt hours of energy storage systems across the U.S. and internationally for utility, microgrid, commercial and industrial customers.
“Energy storage assets play a crucial role in the transition to an economy powered by intermittent renewable energy sources,” Olivia Wassenaar, senior partner and co-lead of natural resources at Apollo, said. “FlexGen’s energy storage solutions bridge the gap of reliability for the grid and help accelerate the adoption of renewables by shifting renewable power consumption to times when it is needed most.”
Apollo has known the team for a number of years and is impressed with the business they’ve built, and the firm is excited to help it grow in the coming years, predominantly in North America, she added.
Over the past 18 months, Apollo has invested in several companies focused on energy transition globally, including U.S. Wind, an offshore wind developer, gas transportation company Total Operations and Production Services and Estonian biomass energy producer AS Graanul Invest. In addition, the Apollo-sponsored Spartan series of special purpose acquisition vehicles have announced or completed combinations with groups including electric-vehicle company Fisker Inc. and residential solar financing group Sunlight Financial.
Vinson & Elkins acted as legal adviser to the Apollo while Citigroup Inc. and DLA Piper acted as financial and legal advisers to FlexGen.
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