KKR Acquires Zenith To Expand Off-Grid Power Reach

Global investment firm KKR has announced its acquisition of Zenith Energy, one of Australia’s largest independent power producers (IPP), marking a major move in the renewable energy and sustainable infrastructure space. The deal signals KKR’s commitment to accelerating the energy transition in asset-heavy sectors, particularly through investments in hybrid and off-grid energy solutions that support decarbonization.

Founded in 2006, Zenith Energy is headquartered in Perth and specializes in delivering reliable, sustainable hybrid power systems to remote and off-grid areas. The company plays a key role in servicing Australia’s resource sector, especially the mining industry, where traditional grid infrastructure often cannot reach. Zenith also supports a variety of urban microgrids for commercial, industrial, and residential precincts. With more than 710 megawatts (MW) of contracted capacity across approximately 15 active sites, the company has emerged as a leader in hybrid renewable energy delivery in challenging terrains.

Zenith recently underwent a significant financial uplift, securing an A$1.9 billion (approximately USD 1.2 billion) refinancing and upsizing of its existing bank debt facilities. This move provided over A$1 billion in growth capital, equipping the company with the financial bandwidth to expand its portfolio of clean energy projects. The infusion of capital also underscores the growing confidence of investors and financiers in Zenith’s business model and long-term viability.

With the acquisition, KKR aims to leverage Zenith’s strong market presence and proven capabilities to expand its own infrastructure footprint in Asia Pacific, a region the firm identifies as strategically important. The transaction is being executed through KKR’s Asia Pacific Infrastructure Investors II Fund and involves the purchase of Zenith from a consortium of investors that includes Pacific Equity Partners, OPSEU Pension Trust, and the Foresight Group. Notably, Zenith’s founder and existing management team will retain a minority equity stake in the company, ensuring continuity in leadership and vision as the company scales further.

Hamish Moffat, CEO and Managing Director of Zenith Energy, expressed optimism about the acquisition, highlighting the strategic alignment between the two firms. “The investment by KKR will accelerate our growth and ability to service large scale projects with a broad capital base,” Moffat said. “There are significant and immediate opportunities inherent in the decarbonisation of Australia’s mining sector, which Zenith is uniquely positioned to deliver via large-scale, high-penetration, hybrid power projects. Today’s announcement positions the company to continue providing our distinct value proposition via these unique remote energy solutions to our existing clients, while enabling us to pursue a robust pipeline of new opportunities as Australia’s mining sector intensifies its decarbonisation efforts.”

The partnership comes at a time when Australia’s mining sector is under increasing pressure to decarbonize, driven by both regulatory mandates and stakeholder expectations. Hybrid energy systems—combining renewable sources like solar and wind with backup generators and energy storage—are seen as a key solution to cutting emissions while maintaining reliability in energy supply for remote operations. Zenith’s extensive experience in deploying such systems gives it a competitive edge in capturing this growing market demand.

For KKR, the acquisition of Zenith represents another step in a broader strategy to invest in infrastructure assets that are aligned with the global transition to a low-carbon economy. The firm identified “brown-to-green” transitions—converting carbon-intensive, asset-heavy sectors into more sustainable models—as a top investment theme in a strategic outlook released in December 2023. By acquiring Zenith, KKR is acting on this thesis and positioning itself to benefit from long-term trends in energy decarbonization.

Andrew Jennings, Managing Director and Head of Infrastructure for Australia and New Zealand at KKR, emphasized Zenith’s strategic importance. “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,” Jennings said. “We look forward to supporting Zenith and its management team over the next stage of growth and helping them capitalise on the significant opportunity for off-grid renewable power.”

The acquisition also reflects a broader shift in infrastructure investing, where private equity firms are increasingly turning to green and resilient energy systems as long-term, yield-generating assets. With their capital, global reach, and operational expertise, firms like KKR are well-positioned to accelerate the deployment of clean energy infrastructure that supports net-zero commitments.

As the energy transition accelerates, strategic deals like this are expected to become more common, especially in regions like Australia where abundant renewable resources meet strong industrial demand. For Zenith Energy, the backing of a global powerhouse like KKR provides both credibility and capital to scale its solutions in one of the world’s most dynamic energy markets.