REDWOOD CITY, California – (COMMERCIAL LINE) – SB Energy Global, LLC (“SB Energy”) today announced that funds managed by Ares Management Corporation’s (“Ares”) Infrastructure and Power strategy are conducting a strategic equity investment of up to $ 600 million, including potential capital co-investor, in SB Energy, SoftBank Group Corp.’s US climate infrastructure technology platform (“SoftBank”). The funds managed by Ares have pledged most of the funding, with the balance expected to come from the co-investors. This investment brings together two major investors in climate technology and infrastructure to foster innovation and the deployment of clean energy on a large scale.
Michel Combes, CEO of SoftBank Group International, said: “SoftBank launched SB Energy to accelerate access to reliable, affordable renewable energy. The combination of artificial intelligence and technology with large-scale renewable energy deployment is critical to energy transformation and benefits people around the world. Our new Ares investment brings together the expertise of Ares climate infrastructure, SoftBank’s artificial intelligence and technology ecosystem, and SB Energy’s execution track record into a single platform to deliver flexible renewable energy on a large scale. “.
SB Energy rapidly expanded its Climate Infra-Tech platform with plans to provide 10 gigawatts (GW) of renewable energy and storage projects in operation or under construction by the end of 2025. Since launching in the US market in 2019, the ‘The company has completed development, financing and commencement of construction of nearly 1.7 GW of industrial-scale solar projects, of which 1.3 GW are currently providing clean and reliable power to Texas and California.
SB Energy continues to aggressively grow its renewable energy and storage project pipeline through greenfield development, partnerships and acquisitions, while also expanding its digital and technology capabilities. In addition to the capital of SoftBank and Ares, SB Energy has partnered with leading financial institutions to secure more than $ 4 billion in tax equity and project financing from inception to develop and build renewable projects and make additional investments in the transition to ‘clean energy.
“We are proud to announce the investment of Ares funds, which launches a new chapter for SB Energy and an expansion of our partnership with Ares which began in 2020, “said Rich Hossfeld, co-CEO of SB Energy.”With the support of Ares and SoftBank, SB Energy will rapidly scale our strategic platform in renewable energy, storage and new digital products as a developer, owner and operator of the next generation of climate infrastructure and technologies ”.
“We are excited to work with SB Energy to leverage our combined strengths in driving the clean energy transition, “said Andrew Pike, partner and co-head of Ares Infrastructure and Power.”Our investment in SB Energy builds on our existing relationship and reflects our focus on supporting high quality climate infrastructure platforms through our innovative capital solutions. ”
“Ares and SB Energy share a commitment to accelerate the transition to a low-carbon economy through the development of essential resources for climate infrastructure, “said Mike Roth, partner of Ares Infrastructure and Power.”With the additional support of Ares’ flexible capital, SB Energy is well positioned to meet the growing demand for sustainable clean energy and build on its solid track record, including bringing nearly 2 GW of solar power online in just two years.
Milbank LLP served as an external advisor to SB Energy, Kirkland & Ellis LLP served as an external advisor for the funds managed by Ares, and Morrison & Foerster LLP served as an external advisor to SoftBank on the transaction.
About SB Energy
SB Energy is a leading industrial-scale solar, energy storage and technology platform supported by SoftBank Group Corp. and funds managed by Ares Management Corporation’s Infrastructure and Power strategy. We develop, build, own and operate some of the largest and most technically advanced renewable projects in the United States. SB Energy’s mission is to provide flexible renewable energy on a large scale, accelerating the global energy transition and benefiting our planet, customers, communities and people. For more information, visit SBenergy.com.
Information on the SoftBank group
The SoftBank Group invests in revolutionary technologies to improve the quality of life of people around the world. The SoftBank Group is comprised of SoftBank Group Corp. (TOKYO: 9984), an investment holding that includes holdings in telecommunications, Internet services, artificial intelligence, intelligent robotics, IoT and clean energy technology providers; the SoftBank Vision Funds, which are investing more than $ 140 billion to help extraordinary entrepreneurs transform industries and create new ones; the $ 5 billion SoftBank Latin America Fund, the largest venture fund in that region; the $ 3 billion SoftBank Latin America Fund II; and SB Opportunity Fund, a $ 100 million fund that invests in black, Latino and Native American founders in the United States. To find out more, visit https://group.softbank/en.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating between our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of December 31, 2021, Ares Management Corporation’s global platform managed approximately $ 306 billion in assets, with approximately 2,100 employees operating in North America, Europe, Asia Pacific and the Middle East. For more information, visit www.aresmgmt.com.