Goldman Sachs Alternatives Makes $440 Million Strategic Investment in BrightNight to Fund Continued Growth

Rhea-AI Summary

Goldman Sachs Alternatives has made a $440 million strategic investment in BrightNight, a leading renewable power company. This investment, along with existing capital commitments, is expected to fully fund BrightNight's five-year business plan and advance the execution of its 31-gigawatt renewable power project portfolio. The investment strengthens BrightNight's position as a leading U.S. renewable power platform and adds an established partner with deep energy transition experience.

The transaction is set to close in September 2024. BrightNight's proprietary AI software platform, PowerAlpha®, enhances its project portfolio. The company aims to provide utility and commercial customers with clean, dispatchable renewable power solutions. Global Infrastructure Partners (GIP) will continue to support BrightNight with its existing capital commitment and maintain its minority equity interests.

Positive

• Goldman Sachs Alternatives' $440 million strategic investment fully funds BrightNight's five-year business plan
• BrightNight has a 31-gigawatt renewable power project portfolio
• Partnership with Goldman Sachs adds an established partner with deep energy transition experience
• BrightNight's proprietary AI software platform, PowerAlpha®, enhances its project portfolio
• Global Infrastructure Partners (GIP) continues to support BrightNight with existing capital commitment

Negative

• None.

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Strategic investment from Goldman Sachs Alternatives fortifies BrightNight's standing as a leading U.S. renewable power platform

WEST PALM BEACH, Fla., Aug. 1, 2024 /PRNewswire/ -- BrightNight (the "Company"), a leading renewable power company designed to provide utility and commercial and industrial customers with clean, dispatchable renewable power solutions, announced today a $440 million strategic investment from the Infrastructure business at Goldman Sachs Alternatives.

Strategic investment from Goldman Sachs fortifies BrightNight's standing as a leading U.S. renewable power platform.

This investment, together with existing capital commitments, is expected to fully fund BrightNight's five-year business plan and advance execution of its 31-gigawatt renewable power project portfolio enhanced by its proprietary AI software platform, PowerAlpha®.

This investment adds an established and aligned partner with deep energy transition and capital markets experience and further strengthens the Company's balance sheet. The transaction is expected to close in September 2024.

BrightNight Chairman and CEO Martin Hermann said: "BrightNight was founded on a unique combination of strengths that capitalize on strong secular energy transition tailwinds. We have quickly established a large and differentiated portfolio in high-demand growth markets seeking decarbonizing renewable energy solutions to meet growing load and reliability needs. BrightNight's best-in-class team, extensive project portfolio, and revolutionary AI-powered software platform, PowerAlpha®, position us to maximize value for our utility and corporate customers. We look forward to continuing this journey in partnership with Goldman Sachs."

"Our investment demonstrates the strength of BrightNight's platform and the differentiated solar and storage project portfolio Martin and the team have developed," said Cedric Lucas, Managing Director in Infrastructure at Goldman Sachs Alternatives. "We share a joint ambition to build a leading renewable independent power producer (IPP) and, through this partnership, we look to accelerate its growth by providing long-term capital backing and leveraging our firm's capabilities and relationships in the sector."

"Demand for renewable energy continues to benefit from strong secular energy transition tailwinds, including substantial corporate decarbonization goals and both federal and state-level policy support," said Teresa Mattamouros, Managing Director in Infrastructure at Goldman Sachs Alternatives. "We have been impressed by BrightNight's unique development approach, focusing on markets with attractive commercial dynamics and targeting high-value interconnection positions."

BrightNight CFO Brian Boland added: "We are excited to announce our partnership with Goldman Sachs and have been fortunate to garner the support of world-class partners over the years. Goldman Sachs' investment, together with our existing capital commitments and bank group, will help drive execution of our IPP business model and build-out of our utility-scale portfolio – delivering critical clean energy infrastructure to serve our customers across the U.S.
Global Infrastructure Partners ("GIP") will continue to support BrightNight with its existing capital commitment utilized to fund construction equity needs and will also maintain its minority equity interests. We want to thank GIP for its financial and operational support along our journey, and for its continued commitment to BrightNight."

BofA Securities, Inc. and PJT Partners acted as financial advisors to BrightNight.

Jefferies LLC acted as sole financial advisor and Weil, Gotshal & Manges served as legal counsel to Goldman Sachs Alternatives.

About BrightNight

BrightNight is a leading renewable integrated power company designed to provide utility and commercial and industrial customers with clean, dispatchable renewable power solutions. BrightNight works with customers across the U.S. to design, develop, and operate safe, reliable, large-scale renewable power projects optimized to better manage the intermittent nature of renewable energy. Its deep customer engagement process, team of proven power experts, and industry-leading solutions enable customers to meet and exceed challenging energy sustainability standards, rapidly changing grid dynamics, and facilitate the transition away from fossil fuel generation. BrightNight's industry-first Artificial Intelligence platform, PowerAlpha®, allows it to design, optimize, and operate renewable power plants with industry-leading economics and performance. In addition to Goldman Sachs, current BrightNight investors and partners include Global Infrastructure Partners and CPPIB-backed Cordelio Power.  To learn more, please visit www.brightnightpower.com

About Infrastructure at Goldman Sachs Alternatives

Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $450 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, hedge funds and sustainability. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.

The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.

The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world's leading institutions, financial advisors and individuals. Goldman Sachs has over $2.9 trillion in assets under supervision globally as of June 30, 2024.

Established in 2006, Infrastructure at Goldman Sachs Alternatives has consistently navigated the evolving infrastructure asset class, having invested approximately $16 billion in infrastructure assets across market cycles since its inception. The business partners with experienced operators and management teams across multiple sectors, including energy transition, digital infrastructure, transportation & logistics and social infrastructure.

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SOURCE BrightNight

FAQ

What is the size of Goldman Sachs' investment in BrightNight?

Goldman Sachs Alternatives has made a $440 million strategic investment in BrightNight.

When is the Goldman Sachs (GS) investment in BrightNight expected to close?

The transaction is expected to close in September 2024.

What is the size of BrightNight's renewable power project portfolio?

BrightNight has a 31-gigawatt renewable power project portfolio.

What is BrightNight's proprietary AI software platform called?

BrightNight's proprietary AI software platform is called PowerAlpha®.

Will Global Infrastructure Partners (GIP) continue to support BrightNight after Goldman Sachs' investment?

Yes, Global Infrastructure Partners (GIP) will continue to support BrightNight with its existing capital commitment and maintain its minority equity interests.