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Macquarie to Acquire Stake in D.E. Shaw Renewable Investments

By Gillian Tan
Sheep graze near wind turbines at a wind farm near Highway 12 in Rio Vista, California, U.S., on Tuesday, March 30, 2021. President Biden's $2.25 trillion infrastructure and stimulus blueprint he is set to unveil today, meant to catalyze investments in a clean energy economy and encourage low-emission technology necessary to constrain global warming, would give a 10-year extension to tax credits that have been a boon to wind and other renewable energy projects. Photographer: David Paul Morris/Bloomberg (David Paul Morris/Bloomberg)

(Bloomberg) -- Macquarie Group Ltd.’s asset-management arm agreed to acquire a minority stake in D. E. Shaw Renewable Investments, a renewable-energy company that owns, operates and develops US wind, solar and battery-storage projects.

The equity investment of as much as $1.73 billion is “intended to enable DESRI to continue its growth and enhance its market-leading position,” the companies said in a statement seen by Bloomberg News and scheduled to be released Tuesday.

Macquarie Asset Management, part of Sydney-based Macquarie Group, is pursuing the transaction through funds including Macquarie Global Infrastructure Fund, Macquarie Green Energy and Climate Opportunities Fund, and Macquarie Energy Transition Infrastructure Fund International. The deal is subject to regulatory approvals.

DESRI is “an energy-transition platform of scale with a proven, highly regarded management team and a large base of operating assets which we expect will grow over the medium term through the successful completion of late-stage projects,” Christopher Frost, a Macquarie Asset Management senior managing director focused on real assets, said in the statement. 

DESRI, led by Chief Executive Officer David Zwillinger, has a portfolio across 24 states with more than 10 gigawatts of generation capacity, which can power nearly 2 million homes, according to its website. It separately has a development pipeline of more than 25 gigawatts, Macquarie said Tuesday. 

“With the growth of the renewable-energy market, suppliers and customers are seeking trusted partners that can scale and consolidate the market,” William Demas, head of Macquarie Asset Management Green Investments for the Americas, said in the statement. The partnership will help Macquarie “capture this opportunity and help accelerate the transition to net zero.”

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