KKR Forms A$600m Energy Transition Strategic Partnership with HMC

Key Terms

bess technical

BESS stands for Battery Energy Storage System, a technology that stores electricity for later use. Think of it as a large rechargeable battery that can hold excess power generated during times of low demand and release it when usage is high, helping balance supply and demand. This is important for investors because it supports the stability of energy grids, enables the integration of renewable sources, and can create new opportunities for profitability in the energy market.

battery storage technical

Battery storage is a system that stores electricity in large rechargeable batteries so power can be used later, like a reusable fuel tank for the grid. Investors care because it smooths out when energy is available vs. when it’s needed, can lower costs, create new revenue from selling stored power at peak times, and reduce reliance on unpredictable energy sources, affecting utility and clean-energy company valuations.

energy transition technical

Energy transition is the global shift from relying mainly on fossil fuels, like coal and oil, to using cleaner and renewable sources of energy, such as wind, solar, and water. This change is important to investors because it influences the future of energy markets, affects the value of related industries, and can create new opportunities or challenges as the world moves toward more sustainable energy sources.

decarbonization technical

Decarbonization is the process of cutting a company’s greenhouse gas emissions across its operations, supply chain and products by switching to cleaner energy, improving efficiency and changing materials or processes. For investors it matters because lower emissions can reduce regulatory and energy costs, limit legal and reputational risks, and signal long-term competitiveness—like a business replacing a gas-guzzling fleet with fuel-efficient or electric vehicles to save money and stay compliant.

distributed energy technical

Distributed energy means electricity generation and storage that happen close to where power is used — such as rooftop solar, small wind turbines, battery systems, or local microgrids — instead of at large, central power plants. It matters to investors because it changes how electricity is produced, sold and valued: it can lower costs, create new revenue streams, alter utility business models, and affect regulatory and infrastructure spending, much like shops in a neighborhood replacing a single distant factory.

SYDNEY--(BUSINESS WIRE)-- HMC Capital (ASX: HMC) and KKR, a leading global investment firm, today announced the establishment of a new strategic partnership under which KKR-managed funds will invest up to $603 million into HMC’s Energy Transition Platform (the “Platform”). The investment will introduce KKR as a strategic partner alongside HMC in the Platform’s existing 652MW operational assets and its 5.7GW BESS and wind development pipeline. KKR’s investment will support the Platform’s continued expansion, including the development of new battery storage and wind projects critical to grid reliability and Australia’s energy transition.

The investment needed to fund Australia’s energy transition is considerable, and the Platform is well-placed to bring to market its significant clean energy generation capacity to support the growing energy demand from consumer, industrial and emerging AI users over the coming decades. This transaction establishes the foundation for HMC and KKR to significantly scale the existing Platform and identify growth opportunities alongside the Platform’s experienced management team.

HMC Capital Managing Director and CEO, David Di Pilla, said "We are delighted to be working with an experienced global investor of KKR’s calibre. KKR’s investment validates the quality of the Platform we have built and sets the foundation for HMC to play a major role in Australia’s transition to net zero carbon by 2050. KKR’s capital will enable the Platform to materially grow operating capacity, cash flow and progress the strategically valuable development pipeline."

KKR Partner and Head of KKR’s Climate Transition strategy for Asia, Neil Arora, said “As renewable generation in Australia continues to expand, the country’s energy system is at a pivotal moment. Delivering Australia’s ambition will require investment in flexible infrastructure such as battery storage to keep the grid secure and reliable. We are pleased to support HMC Capital’s leading operating platform, and by leveraging KKR’s global network, operational expertise, and deep experience across our climate, energy and infrastructure teams, we are well positioned to scale this platform and contribute meaningfully to Australia’s decarbonization objectives.”

HMC Capital Chair of Energy Transition Platform, the Hon. Julia Gillard AC, said “The introduction of KKR as a strategic partner marks a pivotal step in the Platform’s ambition to build a world class renewables business which can play a major role in helping Australia achieve its clean energy commitments. In KKR, we are delighted to have a collaborator with deep global relationships and expertise to help the Platform deliver on its goal to be a national champion of Australia’s transition to a net zero economy by 2050.”

KKR is funding this investment from its Global Climate Transition strategy. The firm has committed more than US$44 billion to climate and environmental sustainability investments since 2010 and is a leading investor in the energy transition. This marks KKR’s second Climate investment in Australia, following CleanPeak, an Australian distributed energy platform.

Other KKR Climate investments include Zenobē, a UK-based transport electrification and battery storage solutions specialist; EGC, an energy service provider in Germany; Dawsongroup, an independent asset leasing business which provides a diverse range of business-critical solutions; Avantus, a solar and solar-plus-storage developer in the US; and IGNIS P2X, an industrial decarbonisation platform in Spain.

The transaction is expected to close in mid-2026, subject to customary regulatory approvals.

About HMC Capital

HMC Capital (ASX: HMC) is an ASX-listed diversified alternative asset manager focused on high conviction investment opportunities across real estate, private equity, energy transition, digital infrastructure and private credit. We manage approximately $19bn on behalf of institutional, high net worth and retail investors. We have a highly experienced and aligned team with deep investment and operational expertise. We have significant alignment with our investors via over $1bn of balance sheet co-investments across our platforms.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

Important Notice – Forward-Looking Statements

This release contains certain forward-looking statements, which may include indications of, and guidance on, future earnings, financial position and performance. Forward-looking statements, opinions and estimates provided in this release are based on assumptions and contingencies that are subject to change without notice and involve known and unknown risks, uncertainties, assumptions, contingencies and other factors, many of which are beyond the control of HMC Capital. Actual results, performance or achievements may differ materially from those expressed or implied in those statements and any projections and assumptions on which these statements are based.

No guarantee, representation or warranty, express or implied, is made as to the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns, statements or tax treatment in relation to future matters contained in this release. The forward-looking statements are based only on information available to HMC Capital as at the date of this release. Except as required by applicable laws or regulations, HMC Capital does not undertake any obligation to provide any additional or updated information or revise the forward-looking statements or other statements in this release, whether as a result of a change in expectations or assumptions, new information, future events, results or circumstances.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260205961730/en/

For more information, please contact:

HMC Capital

Jim Kelly

+61 412 549 083

jim.kelly@sodali.com

KKR

Wei Jun Ong

+65 9139 5813

weijun.ong@kkr.com



Samuel Brustad

+81 90 7094 2523

samuel.brustad@kkr.com

Source: KKR