BlackRock to acquire Jupiter Power from EnCap Investments

BlackRock Alternatives, through a fund managed by its Diversified Infrastructure business, has agreed to acquire Jupiter Power, a US operator and developer of stand-alone, utility-scale battery energy storage systems.

EnCap Energy Transition Fund I (EETF I) and co-investment partners Yorktown Partners and Mercuria Energy are selling Jupiter, and the transaction is expected to close in late 2022, subject to customary closing conditions.

Since its founding in 2017, Jupiter has focused on proprietary data-driven approaches to large scale, stand-alone energy storage projects designed to meet the growing need for grid support and renewables integration driven by the energy transition.

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EnCap was an early investor in Jupiter and has been an aggressive provider of capital in the fast-growing US energy storage business since it began pursuing opportunities created by the global transition to a lower-carbon energy system. With EnCap’s financial support and strategic expertise, Jupiter leveraged its early mover development positions, supplier relationships and proprietary dispatch applications to successfully execute its innovative portfolio. This allowed Jupiter to become a leader in bridging the gap between intermittent generation supply and real-time consumer demand for power.

The acquisition of Jupiter by BlackRock’s Diversified Infrastructure business, part of BlackRock Alternatives, is the second exit transaction by EnCap’s $1.2 billion EETF I. In addition to Jupiter, EETF I has backed leading energy transition companies, including Catalyze Energy (distributed commercial and industrial solar plus batteries), Solar Proponent (large scale solar), Triple Oak Power (utility scale wind power) and Arbor Renewable Gas (clean fuels), among others.

White and Case, LLP served as legal advisor and Lazard as financial advisor to the seller, and Simpson Thacher & Bartlett as BlackRock’s legal advisor.

Source: Private Equity Wire

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