SB Energy, SoftBank Group’s U.S. Renewables Platform, Announces Strategic Equity Investment From Ares Management

By AIT News Desk On Mar 8, 2022

Leading Climate Infrastructure Technology Platform to Accelerate Growth and Provide Flexible Renewable Generation at Scale

-SB Energy Global, LLC (“SB Energy”) announced that funds managed by the Infrastructure and Power strategy of Ares Management Corporation (“Ares”) are leading a strategic equity investment of up to $600 million, including capital from potential co-investors, in SB Energy, SoftBank Group Corp.’s (“SoftBank”) U.S. Climate Infrastructure Technology platform. The Ares-managed funds have committed the majority of the financing, with the balance expected to come from co-investors. This investment brings together two leading technology and climate infrastructure investors to drive innovation and the deployment of clean energy at scale.

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Michel Combes, CEO of SoftBank Group International, stated, “SoftBank launched SB Energy to accelerate access to reliable, cost-effective, renewable energy. Combining AI and technology with renewable deployment at scale is critical to the energy transformation and benefits people across the globe. Our new investment from Ares brings together Ares’ climate infrastructure experience, SoftBank’s AI and technology ecosystem, and SB Energy’s track record of execution into a single platform to deliver flexible renewable energy at scale.”

SB Energy has quickly grown its Climate Infra-Tech platform with plans to deliver 10 gigawatts (GW) of renewable energy and storage projects in operation or under construction by the end of 2025. Since launching in the U.S. market in 2019, the company has completed development of, financed, and started construction on nearly 1.7 GW of utility-scale solar projects, of which 1.3 GW are currently providing clean, reliable energy 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 in its digital and technology capabilities. In addition to capital from SoftBank and Ares, SB Energy has forged partnerships with leading financial institutions to secure more than $4 billion in tax equity and project financing since inception to develop and build renewable projects and make further investments in the clean energy transition.

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“We are proud to announce Ares’ funds’ investment, which launches a new chapter for SB Energy and an expansion of our collaboration with Ares that began in 2020,” said SB Energy co-CEO Rich Hossfeld. “With the support of both 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 technology.”

“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 accelerating the transition to a low carbon economy through the development of essential climate infrastructure assets,” said Mike Roth, Partner in Ares Infrastructure and Power. “With the added support of Ares’ flexible capital, SB Energy is well-positioned to meet the growing demand for sustainable clean energy and build on its strong track record, including having brought online nearly 2 GW of solar in just two years.”

Milbank LLP served as outside counsel to SB Energy, Kirkland & Ellis LLP served as outside counsel to the Ares-managed funds, and Morrison & Foerster LLP served as outside counsel to SoftBank on the transaction.

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