KKR has agreed to acquire Australian hybrid energy provider Zenith Energy from Pacific Equity Partners, OPTrust, and Foresight Group, marking another major infrastructure investment for the US private equity firm in the Asia-Pacific region.

Although financial details were not formally disclosed, sources cited by Bloomberg suggest the deal is valued at approximately AUD1.7bn ($1.1bn), or 12 times Zenith’s contracted earnings.

Zenith’s founder and senior leadership team will retain a minority stake, ensuring strategic continuity and operational stability as the company embarks on the next phase of growth.

“There are significant and immediate opportunities inherent in the decarbonisation of Australia’s mining sector, which Zenith is uniquely positioned to deliver,” said CEO and Managing Director Hamish Moffat. He noted that the partnership with KKR would strengthen the company’s ability to scale its project delivery capabilities.

The acquisition follows Zenith’s recent AUD1.9bn refinancing and debt expansion, which is intended to support its ongoing pipeline of projects. The company currently manages more than 710MW of contracted capacity across around 15 remote and off-grid sites in Western Australia and the Northern Territory.

Subject to regulatory approvals, the transaction is expected to complete by late 2025.

KKR, which oversees a $166bn portfolio, continues to expand its global infrastructure footprint, with growing emphasis on renewables and decentralised energy as long-term value creation themes.

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