NEW YORK and LONDON, Sept. 7, 2023 /PRNewswire/ -- Tiger Infrastructure Partners today announced the sale of its interest in London-based portfolio company Zenobē to KKR, a leading global investment firm, and Infracapital, the infrastructure equity investment arm of M&G Plc and a current investor in Zenobē. The transaction marks Tiger's successful exit from an investment that exemplified its innovative, transformational growth capital strategies for middle-market infrastructure. Tiger supported Zenobē's dynamic rise from early concept to global leadership in grid-scale battery storage and fleet electrification.
"This investment in Zenobe's growth by a leading name in private equity culminates a journey of first-mover leadership."
KKR and Infracapital have formed a strategic partnership to support the growth of the company and will invest approximately GBP 600 million and GBP 270 million, respectively, in this transaction.
Founded in 2017 by Nicholas Beatty, James Basden and Steven Meersman, Zenobē is a global player in electrification solutions for fleets and battery storage solutions for grid network infrastructure, with market leading positions in the UK, Australia and New Zealand, and a growing presence in continental Europe as well as North America. From Zenobē's inception in 2017, Tiger became its first institutional investor, building on initial capital from private sources and providing hands-on expertise to position the company's platform to become "core infrastructure of tomorrow". Tiger worked closely with Zenobē's founders to expand its UK-based grid-scale battery storage business and to use its battery management expertise to help bus and increasingly HGV operating companies in the UK and globally with a range of turnkey solutions to decarbonize their fleets and meet emission-reduction objectives.
Tiger later brought in additional sophisticated institutional investors including Infracapital and JERA Co. Inc., a leading Japanese utility. By supporting the development of a blue-chip investor base and the creation of an infrastructure business model supported by Zenobē's assets and long-term contracts, Tiger helped position the company to also attract over £1bn of debt financing from banks and other institutional lenders since its foundation.
Tiger CEO Emil W. Henry, Jr. stated: "This major investment in the next stage of Zenobē's growth, by one of the leading names in infrastructure private equity, culminates a journey of first-mover leadership by the company's founders and Tiger. Zenobē's visionary management catapulted the company to the forefront of the energy transition worldwide by creating the first global, grid-scale battery energy storage company, and first to provide a full EV fleet solution."
Continued Henry, "Tiger's thesis-driven strategy gave us early-look insights into tailwinds driving the need for then-nascent battery storage as a critical element of decarbonization. We were privileged to help this superior management catalyze Zenobē's growth by applying timely expansion capital and hands-on strategic and operating expertise while leveraging our unique transatlantic footprint to facilitate Zenobē's entry into the US market as energy storage and fleet electrification takes off."
Nicholas Beatty, Co-Founder and Director, Zenobē said, "With the committed support of our initial investors, Zenobē has evolved from a start-up idea of its founders to a highly valued innovator in the new core energy infrastructure. Tiger's early belief in the Zenobē founders' vision provided the critical first institutional capital and expertise to help grow those ideas into the Company's global leadership in grid-scale battery storage and fleet electrification. That has enabled the business to accelerate the electrification of bus and now commercial vehicle fleets in partnership with leading operators and support the connection of further battery storage assets to deploy more renewable energy in the UK and globally.
Added Beatty, "Now, we will partner with, and benefit from, an extensive new round of investments from KKR and Infracapital to capitalize on the ever-increasing demand for our services. In this next phase of development for Zenobē and the industry, we'll seize on the competitive advantage of the technology we have developed internally and with our suppliers as well as the synergies between our battery storage and fleet electrification businesses and our presence in multiple fast-growth markets as we expand beyond the UK, Australia, New Zealand into Continental Europe and the US."
Since Tiger's initial investment, Zenobē's battery storage capacity has grown from 14MW to 430MW in operation or under construction today with another 1.2GW of projects in advanced development in the UK, and its fleet of electric buses, coaches and trucks supported globally has grown from zero to more than 1,000 vehicles deployed in over 75 depots. The transaction is expected to close in the fourth quarter of 2023 and is subject to customary closing conditions and regulatory approvals.
About Zenobē
Zenobē is an EV fleet and grid-scale battery storage specialist, headquartered in the UK. The company began operations in 2017 with three founders and has over the past 6 years increased its staff to >230 FTEs with a wide range of leading skills including electrical engineering, software development, computer sciences and financing. It now operates in Europe and Australasia and is expanding into North America. Zenobē has 430MW of battery storage in operation or under construction with another 1.2GW of projects in advanced development in the UK which equates to circa 20% market share forecast by 2026. It has around 25% market share of the UK EV bus sector and c.1000 electric vehicles supported globally. The company is the largest owner and operator of EV buses in the UK, Australia and New Zealand.
Zenobē's services are supported by market leading financing capability. This has included completing and drawing down against the Fleet private placement in February 2022 which raised over £240 million long term debt for the financing of Fleet customers, principally bus operators in the UK, over up to 16 years. This also included the financing of grid-scale batteries completed in February 2023 which raised £635m of debt including an accordion for the development of Zenobe's grid-scale battery storage assets in Scotland. For more information, please visit www.zenobe.com/ or follow on LinkedIn.
About Tiger Infrastructure Partners
Tiger Infrastructure Partners is an innovative private equity firm focused on providing transformational growth capital to middle market infrastructure companies. Tiger's value-add approach targets growth investments across the Digital Infrastructure, Energy Transition and Transportation sectors in North America and Europe, where Tiger believes strong tailwinds are driving demand for new infrastructure. Tiger maintains offices in New York and London. For more information, visit www.tigerinfrastructure.com.
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 and on X (formerly Twitter) @KKR_Co.
About Infracapital
Infracapital invests in, builds and manages a diverse range of essential infrastructure to meet the changing needs of society and support long-term economic growth. We take an active role in all of our investments, whether nascent or large, to fulfil their potential and ensure they are adaptable and resilient. Our approach creates value for our investors, as we target investments with the scope for stable and sustainable growth. Our portfolio companies work closely with the communities where they are based, to the benefit of all stakeholders. Infracapital is well positioned to deliver the significant investment required to help build the future. The founder-led team of experienced specialists has worked with more than 60 companies around Europe and has raised and managed over €7.8 billion of client capital across six funds. Infracapital is part of M&G Plc, an international savings and investments business, managing money for around 5 million retail customers and more than 800 institutional clients in 28 markets. Total assets under management are £342 billion (as of 31 December 2022). https://www.infracapital.co.uk/
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