Global investment firm KKR has agreed to acquire Zenith Energy, an Australian independent power producer ( IPP ), from a consortium including Pacific Equity Partners, OPSEU Pension Trust, and Foresight Group, with Zenith’s founder and management retaining a minority stake. Financial terms of the deal were not disclosed.

Zenith specializes in the delivery of sustainable and reliable hybrid power solutions for remote, off-grid resource sector clients and urban microgrids for commercial, industrial, and residential precincts.

The company provides an essential service for Australia’s large off-grid mining industry. With a strong track record over its 18-year operating history, Zenith has more than 710 megawatts of contracted capacity across 15 sites, secured under long-term contracts.

“Zenith has established itself as one of the clear leaders in deploying and managing hybrid power solutions in Australia, a priority market for KKR in Asia-Pacific,” says Andrew Jennings, managing director and head of Australia and New Zealand infrastructure at KKR.

 “We look forward to supporting Zenith and its management team over the next stage of growth and helping them capitalize on the significant opportunity for off-grid renewable power.”

The announcement follows Zenith’s completion of a A$1.9 billion ( US$1.24 billion ) refinancing and upsizing of its existing bank debt facilities, with the increased limit providing the company with more than A$1 billion of growth capital from several lenders to support the development of new projects.

A portion of the financing package includes green loan facilities, underscoring Zenith’s commitment to the energy transition of Australia’s resource sector by delivering renewable power technologies and lower emissions solutions for mine site energy supplies, the company says.

KKR is making the investment from its Asia-Pacific Infrastructure Investors II Fund. Its past investments in the renewables sector in the region include Spark Infrastructure, which owns high-quality, regulated electricity networks across Australia; Virescent Renewable Energy Trust, a renewable energy platform in India; Hero Future Energies, a global renewable energy company; First Gen, a provider of clean and renewable power in the Philippines; and Aster Renewable Energy, a renewables platform in Taiwan.

The company’s Asia-Pacific infrastructure platform has grown to approximately US$13 billion in assets under management since it was established in 2019.

The latest deal is expected to close in late 2025, subject to customary regulatory approvals.