HMC Capital and KKR Forge Strategic Partnership to Accelerate Australia’s Energy Transition
HMC Capital (ASX: HMC) has announced a landmark strategic partnership with global investment firm KKR, under which KKR-managed funds will invest up to $603 million into HMC’s Energy Transition Platform (the “Platform”). This collaboration positions KKR as a strategic partner alongside HMC in the Platform’s existing portfolio of operational and development assets, including 652MW of operational renewable energy assets and a 5.7GW pipeline of battery energy storage systems (BESS) and wind projects.
The partnership represents a significant step forward in supporting Australia’s clean energy ambitions. The investment from KKR will not only underpin the Platform’s ongoing expansion but also enable the development of critical new battery storage and wind projects, which are essential for maintaining grid reliability and meeting the country’s long-term energy transition goals. With the growing demand for clean energy from both residential and industrial users, as well as emerging AI-driven infrastructure, the Platform is strategically positioned to deliver substantial renewable energy capacity over the coming decades.
Strengthening Australia’s Energy Infrastructure
The investment comes at a time when the energy transition in Australia requires significant capital to meet growing demand while reducing carbon emissions. HMC’s Platform, with its established operational assets and extensive development pipeline, is well-placed to bring large-scale clean energy projects to market. This transaction provides a robust foundation for HMC and KKR to scale the Platform, leveraging the Platform’s experienced management team to identify and execute growth opportunities in renewable energy generation.
David Di Pilla, Managing Director and CEO of HMC Capital, emphasized the strategic significance of the partnership, stating, 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.”
Global Expertise Meets Local Leadership
KKR brings a wealth of global experience in climate, energy, and infrastructure investments. Neil Arora, Partner at KKR and Head of the firm’s Climate Transition Strategy for Asia, highlighted the critical role of flexible energy infrastructure in Australia’s evolving energy landscape: “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.”
Adding further insight into the national impact of this collaboration, HMC Capital’s Energy Transition Platform Chair, the Hon. Julia Gillard AC, commented, “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’s Commitment to Climate and Sustainability
The investment into HMC’s Energy Transition Platform is funded through KKR’s Global Climate Transition strategy. Since 2010, KKR has committed over US$44 billion to climate and environmental sustainability investments, establishing itself as a leading global investor in the energy transition. This collaboration marks KKR’s second climate-focused investment in Australia, following its investment in CleanPeak, an Australian distributed energy platform.
Globally, KKR’s climate and energy investments span multiple sectors and regions. Key investments include Zenobē, a UK-based transport electrification and battery storage solutions provider; EGC, an energy services company in Germany; Dawsongroup, an independent asset leasing business delivering essential business-critical solutions; Avantus, a solar and solar-plus-storage developer in the United States; and IGNIS P2X, an industrial decarbonisation platform in Spain. These investments reflect KKR’s deep commitment to supporting sustainable energy infrastructure and decarbonization initiatives worldwide.
A Vision for a Net Zero Future
The HMC-KKR partnership underscores the scale of investment required to accelerate the transition to clean energy in Australia and globally. By combining HMC’s operational expertise and deep knowledge of the Australian market with KKR’s global capital and strategic insight, the Platform is poised to become a key driver of the nation’s energy transformation. The collaboration aims to deliver substantial growth in renewable energy capacity, strengthen grid reliability through innovative battery storage solutions, and play a leading role in achieving Australia’s net zero carbon targets by 2050.
This partnership not only reinforces Australia’s position as a global leader in renewable energy development but also highlights the importance of international collaboration and private sector investment in driving large-scale climate solutions. With KKR’s backing, HMC’s Energy Transition Platform is now better equipped than ever to advance Australia’s clean energy future and deliver sustainable energy solutions to meet the demands of the 21st century.
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.
