TPG Acquires Altus Power In $2.2 Billion Solar Deal

TPG, a premier global alternative asset management firm,  announced an agreement to purchase Altus Power, the biggest owner of large-scale commercial-scale solar energy projects in the US, in a cash deal of $2.2 billion. The strategic purchase is expected to significantly enhance the clean energy infrastructure investments of TPG and speed up the business growth of Altus Power given the increasing market demand for sustainability solutions.

Established in 2009, Altus Power is based in Stamford, Connecticut, and is a market leader in commercial solar power. Besides developing, owning, and operating commercial-scale solar arrays, it also invests in energy storage and electric vehicle charging infrastructure. Its portfolio already exceeds 1 GW of solar power capacity, spread over 25 states and providing clean electricity to various business, towns, and residential communities.

The acquisition will be made under TPG's Rise Climate Transition Infrastructure strategy as part of the firm's wider $18 billion global impact investing platform, TPG Rise. TPG Rise Climate was launched early in 2021, and it aims at climate solutions across multiple sectors and asset classes, including energy transition, green mobility, sustainable fuels, and carbon solutions. To further intensify its focus on clean energy, the company launched a Transition Infrastructure strategy within TPG Rise Climate in early 2024. This is led by Managing Partner and Head of Infrastructure Scott Lebovitz, with the goal of driving investments in transformative infrastructure projects that advance the clean energy agenda.

Scott Lebovitz expressed enthusiasm about the partnership, highlighting Altus Power’s exceptional growth and leadership in the commercial-scale clean power market. “We are excited to partner with Altus Power, which has established itself as a leader in commercial-scale, clean power solutions with an exceptional track record of growth,” he said. He emphasized TPG’s commitment to supporting Altus Power in meeting the surging demand for clean energy solutions as businesses and communities increasingly prioritize sustainable power sources.

Altus Power executives also spoke enthusiastically about the partnership. According to CEO Gregg Felton, joining forces with TPG Rise Climate is an important step forward to further establish and strengthen its role in the market for clean energy. "We are deeply enthused about joining forces with TPG Rise Climate to further the development of our position as a leading commercial scale provider of clean electric power for businesses and for homes, east and west across the United States," said Felton. He noted that TPG Rise Climate has deep expertise in the clean energy sector, an investment-focused mindset, and a value-driven approach to infrastructure development - all of which are perfectly aligned with Altus Power's long-term vision.

The partnership will give Altus Power the necessary resources and capabilities to scale operations more rapidly and help the company meet the rising demand for clean electricity. Felton emphasized the significance of this expansion at a time when the demand for power is expected to rise significantly. He said that the transaction would strengthen the company's ability to serve both its Community Solar and commercial clients, offering them clean and reliable electric power solutions.

The deal reflects a growing trend in the energy sector, where investment firms are increasingly turning their attention to renewable energy assets. The shift is driven by the global push to transition from fossil fuels to cleaner and more sustainable energy sources. TPG's investment in Altus Power underscores the firm's commitment to playing a significant role in this transition while delivering value to stakeholders.

Altus Power's extensive portfolio of commercial-scale solar projects and its proven expertise in energy storage and charging infrastructure development make it an attractive acquisition target for TPG Rise Climate. The transaction is expected to unlock new growth opportunities for Altus Power, enabling it to expand its footprint and increase its capacity to generate clean energy across the U.S.

The partnership sits perfectly within the overarching goals of TPG Rise Climate in encouraging positive environmental change through impactful investments. With the help of TPG's extensive resources and the related infrastructure expertise, Altus Power is uniquely positioned to achieve what it wants: taking over the commercial-scale clean energy market and forming a more sustainable future.

The partnership between TPG and Altus Power is a big step toward fulfilling the world's increasing energy needs in an environmentally responsible manner. The two companies are poised to make substantial contributions to the global clean energy transition by leveraging their combined expertise and resources. The acquisition is expected to close in the coming months, subject to customary regulatory approvals and closing conditions.