Blackstone Injects $3 Billion Into CDPQ-Backed Invenergy

Ariana Fine of Solar Industry reports Invenergy receives $3 billion investment for renewable energy activities:

Funds managed by Blackstone Inc.’s Blackstone Infrastructure Partners have entered into a definitive agreement with Caisse de dépôt et placement du Québec (CDPQ) and Invenergy I for an approximately $3 billion equity investment in Invenergy Renewables Holdings LLC.

Blackstone’s investment will provide capital to accelerate Invenergy’s renewables development activities.

CDPQ and Invenergy management remain majority owners of the company, and Invenergy will continue as managing member.

“Blackstone is committed to investing behind the energy transition and Invenergy is the clear independent leader in the renewable energy sector,” says Sean Klimczak, global head of infrastructure at Blackstone. “We look forward to a long-term partnership with the Invenergy and CDPQ teams and are excited to invest alongside them to support the accelerated build-out of Invenergy’s clean energy portfolio.”

Invenergy Renewables has over 175 renewable energy projects totaling nearly 25,000 MW developed across four continents, focused on partnerships with utilities, financial institutions, and commercial and industrial customers.

“The Invenergy team is pleased to welcome Blackstone, a leader in the renewable investment space, as our partner,” states Jim Murphy, president and corporate business leader at Invenergy. “We greatly value our long-term relationship with CDPQ and are thrilled to continue to accelerate the clean energy transition with Blackstone’s additional investment and capabilities.”

Since 2019, Blackstone has committed nearly $13 billion in investments that Blackstone believes are consistent with the broader energy transition. Additionally in 2020, Blackstone announced a plan to reduce carbon emissions by 15% in aggregate within the first three years of ownership across all new investments where Blackstone has control over energy usage.

“We are proud to have the opportunity to work with Michael Polsky and the world-class team at Invenergy,” mentions Matthew Runkle, senior managing director in the Infrastructure Group at Blackstone. “Invenergy has built an outstanding platform for delivering clean energy – which is essential to our future – and we are honored to be a part of their mission.”

“For nearly a decade, we have worked alongside Invenergy to build a key global player in the energy transition, in the United States and around the world,” adds Emmanuel Jaclot, executive vice president and head of infrastructure at CDPQ. “Michael Polsky, Jim Murphy and their team raise the bar when it comes to developing and operating sustainable energy solutions, making their company a true innovator and leader in its field.”

Lazard and CIBC served as M&A advisors to Blackstone and Kirkland & Ellis as legal advisor to Blackstone. Mayer Brown was legal advisor to CDPQ, and Sidley & Austin and White & Case represented the company and Invenergy.

Power Technology also reports Blackstone to invest $3 billionn in Invenergy Renewables Holdings:

US-based alternative investment management company Blackstone is set to invest around $3bn in renewable energy developer Invenergy Renewables Holdings.

Funds managed by Blackstone Infrastructure Partners have signed a definitive agreement with Caisse de dépôt et placement du Québec (CDPQ) and Invenergy to make the equity investment.

The proceeds will be used to expedite Invenergy’s renewable development activities.

CDPQ and Invenergy management will continue to own a majority stake in Invenergy Renewables, with Invenergy also continuing as managing member.

Blackstone Infrastructure global head Sean Klimczak said: “Blackstone is committed to investing behind the energy transition and Invenergy is the clear independent leader in the renewable energy sector.

“We look forward to a long-term partnership with the Invenergy and CDPQ teams and are excited to invest alongside them to support the accelerated build-out of Invenergy’s clean energy portfolio.”

To date, Invenergy Renewables has developed 25GW of renewable energy capacity worldwide.

The company is engaged in the development of the US’ largest wind and solar projects, which will collectively deliver almost 3GW of clean energy by 2023.

Invenergy president and corporate business leader Jim Murphy said: “The Invenergy team is pleased to welcome Blackstone, a leader in the renewable investment space, as our partner.

“We greatly value our long-term relationship with CDPQ and are thrilled to continue to accelerate the clean energy transition with Blackstone’s additional investment and capabilities.”

Lazard and CIBC acted as mergers and acquisition (M&A) advisers to Blackstone for the transaction while Kirkland & Ellis served as the company’s legal adviser.

Based in Chicago, Invenergy develops, owns and operates large-scale sustainable energy generation and storage facilities alongside its affiliates.

Last September, the company announced a joint venture with BW Offshore to build offshore wind projects with up to 5.4GW of combined capacity as part of the first ScotWind leasing round.

CDPQ put out a press release on this deal: 

Today, Blackstone Inc. (NYSE: BX) announced that funds managed by Blackstone Infrastructure Partners have entered into a definitive agreement with Caisse de dépôt et placement du Québec (CDPQ) and Invenergy for an approximately $3 billion equity investment in Invenergy Renewables Holdings LLC (“Invenergy Renewables” or “the company”), the largest private renewable energy company in North America. Blackstone’s investment will provide capital to accelerate Invenergy’s renewables development activities. CDPQ and Invenergy management remain majority owners of the company and Invenergy will continue as managing member.

Invenergy Renewables is one of the largest and most well-respected renewable energy developers, with over 175 projects totaling nearly 25,000 megawatts developed across four continents, focused on long-lasting partnerships with utilities, financial institutions and commercial and industrial customers. The generation projects developed by the company power the equivalent of 8.5 million homes. Invenergy has received numerous industry recognitions, notably a #4 global rank for “Top Power Generators” based on renewables capacity by Energy Intelligence New Energy in 2020. The company’s developed projects have offset approximately 167 million tons of carbon dioxide, or approximately the annual emissions of the state of New York. Invenergy Renewables has a significant development and construction pipeline, and its affiliate Invenergy Transmission is solving power delivery challenges by advancing some of the world’s most innovative transmission infrastructure projects. The company is building both the largest wind and solar projects in the United States, that combined will deliver nearly 3 gigawatts (GW) of clean energy by 2023.

Commenting on the transaction, Sean Klimczak, Global Head of Infrastructure at Blackstone, said: “Blackstone is committed to investing behind the energy transition and Invenergy is the clear independent leader in the renewable energy sector. We look forward to a long-term partnership with the Invenergy and CDPQ teams and are excited to invest alongside them to support the accelerated build-out of Invenergy’s clean energy portfolio.”

Matthew Runkle, Senior Managing Director in the Infrastructure Group at Blackstone, added: “We are proud to have the opportunity to work with Michael Polsky and the world-class team at Invenergy. Invenergy has built an outstanding platform for delivering clean energy – which is essential to our future – and we are honored to be a part of their mission.”

Jim Murphy, President & Corporate Business Leader at Invenergy, said: “The Invenergy team is pleased to welcome Blackstone, a leader in the renewable investment space, as our partner. We greatly value our long-term relationship with CDPQ and are thrilled to continue to accelerate the clean energy transition with Blackstone’s additional investment and capabilities.”

Emmanuel Jaclot, Executive Vice President and Head of Infrastructure at CDPQ, added: “For nearly a decade, we have worked alongside Invenergy to build a key global player in the energy transition, in the United States and around the world. Michael Polsky, Jim Murphy and their team raise the bar when it comes to developing and operating sustainable energy solutions, making their company a true innovator and leader in its field. We are delighted to welcome our long-term partner Blackstone as a new investor, combining our global reach and resources to help position Invenergy for continued growth.”

The investment in Invenergy Renewables is the most recent example of a number of clean energy companies Blackstone is proud to support. Since 2019, Blackstone has committed nearly $13 billion in investments that Blackstone believes are consistent with the broader energy transition. Additionally in 2020, Blackstone announced a plan to reduce carbon emissions by 15% in aggregate within the first three years of ownership across all new investments where Blackstone has control over energy usage.

Lazard and CIBC served as M&A advisors to Blackstone and Kirkland & Ellis as legal advisor to Blackstone. Mayer Brown was legal advisor to CDPQ, and Sidley & Austin and White & Case represented the company and Invenergy.

About Blackstone

Blackstone is the world’s largest alternative asset manager. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $731 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, infrastructure, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

About Blackstone Infrastructure Partners

Blackstone Infrastructure Partners is an active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors. We seek to apply a long-term buy-and-hold strategy to large-scale infrastructure assets with a focus on delivering stable, long-term capital appreciation together with a predictable annual cash flow yield. Our approach to infrastructure investing is one that focuses on responsible stewardship and stakeholder engagement to create value for our investors and the communities we serve.

About CDPQ

At Caisse de dépôt et placement du Québec (CDPQ), we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public retirement and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2021 CDPQ’s net assets total CAD 390 billion. For more information, visit cdpq.com, follow us on Twitter or consult our Facebook or LinkedIn pages.

About Invenergy Renewables

We are innovators building a sustainable world. Invenergy Renewables and its affiliated companies develop, own, and operate large-scale sustainable energy generation and storage facilities in the Americas, Europe and Asia. Invenergy’s home office is located in Chicago, and it has regional development offices in the United States, Canada, Mexico, Spain, Japan, Poland and Scotland. Invenergy has successfully developed more than 25,000 megawatts of projects that are in operation, construction or contracted, including wind, solar power generation facilities as well as transmission and advanced energy storage projects. For more information, please visit www.invenergy.com.

Before I discuss this deal, I invite you to have a look on Invenergy's website here and learn more about this company.

In particular, read about what they do here:

We solve the energy challenges facing our customers and communities.

We are powered by decades of entrepreneurial experience and unparalleled execution. We provide power generation and storage solutions at scale around the world to create a cleaner energy future.

Invenergy performs most work in-house, leading to superior results, lower costs and satisfied customers:

• Development: Bringing transformational clean energy projects to life requires bold vision and first class execution. With a full suite of in-house development capabilities backed by deep expertise, we take projects from the drawing board to reality. We take a unique approach to project siting, land acquisition and permitting in close collaboration with our host communities, and we foster strong relationships with equipment manufacturers to deliver the best technology and value to customers.
• Customer-Driven Approach: In recent years, we have contracted to sell more renewable energy to corporate purchasers than anyone else in the industry. As a privately held, full-service energy solutions provider, we have the unique ability to be creative when it comes to solving complex energy challenges. We work closely with our customers to better understand their goals and objectives and we provide customizable contracting structures to meet their needs.
• Financing: We have completed corporate and project transactions with value in excess of $45 billion. Our partners include a wide range of international and domestic banks, multilateral development banks, export credit agencies, and pension funds. Our reputation for excellence in financing has been recognized across the industry. In 2016, Invenergy won Power Finance & Risk’s Renewable Power Asset M&A Deal of the Year award, and in 2013 and 2012, they recognized us as Project Finance Borrower of the Year.
• Construction: We proactively manage our construction projects with a focus on safety, quality, schedule and budget to ensure an end product that meets or exceeds our company's high standards. Our long history and close relationships with contractors and equipment suppliers, which in some cases date back to even before Invenergy’s founding, enable us to manage construction challenges across multiple projects while maintaining the lowest costs. We project manage to optimize construction based on customer needs, project conditions and our own experience as an owner-operator to deliver the best performance and value for the customer.
• Ownership and Operations: We bring an owner’s mindset to operating projects. Our technicians are on-site and perform inspections and maintenance 2 times more often throughout the year than other O&M providers. This means they respond faster and know the equipment better. It’s why we have an industry-leading wind fleet availability. Working with our Invenergy Control Center operators, our techs provide 24/7, full-service, data-driven fleet management, monitoring and optimization based on market conditions.
• Energize Ventures: In 2016, Invenergy launched a fund to stay ahead in the rapidly-changing energy landscape and to partner with likeminded investors to gain a financial return from the highest-growth segments of the energy industry. Our Founder and CEO, Michael Polsky, and President and COO, Jim Murphy, are members of the Energize Ventures investment committee and help steer the direction of the fund. As the anchor partner, Invenergy is closely tied to the Energize Ventures team and brings valuable industry insights and perspectives for building and scaling successful companies (see Energize Ventures website here). 
• Environment & Wildlife: To avoid and minimize impacts to wildlife and other natural resources, we work with state and federal agencies and other interested stakeholders to site, build, and operate our facilities responsibly. The cornerstone of that effort is our commitment to act in accordance with the U.S. Fish and Wildlife Service’s Land-based Wind Energy Guidelines, which includes robust pre-construction wildlife and habitat surveys, early and often communication with wildlife agencies, and operational monitoring to ensure risk to wildlife is minimized. Our policies, approach, and investments reflect an inherent commitment to environmentally responsible renewable and clean energy generation.
• Community Engagement: When we build projects, we build them for long-term success. We value community partnerships as integral to this success. In addition to hiring for local construction and operations jobs in our host communities, Invenergy also supports local organizations that advance education, veteran and military services, emergency medical services, and environmental stewardship.

We capture, generate and store power at scale to solve today’s energy challenges.

We develop, own and operate large-scale renewable and other clean energy generation and storage facilities worldwide. Our home office is located in Chicago and we have regional development offices in North America, Latin America, Asia and Europe.

We have successfully developed 190 projects totaling more than 29,000 megawatts.

I am just providing you with a glimpse into this company's operations, the more you learn about it, the more you'll understand why Blackstone is investing $3 billion to accelerate Invenergy’s renewables development activities.

Also worth noting, it was exactly a year ago when CDPQ invested an additional US$1 billion in Invenergy Renewables:

The commitment, in the form of new investment facilities, will support Invenergy’s expanded development activities and continued growth, according to a press release. The Caisse began its partnership with Invenergy in 2012 with a stake in a portfolio of operating wind farms and acquired a direct stake in the company in 2013.

“This new investment is the largest since we began our successful partnership with Invenergy in 2013,” said Emmanuel Jaclot, executive vice-president and head of infrastructure at the Caisse, in the release. “[The Caisse de dépôt et placement du Québec] is thrilled to put its constructive capital behind the men and women at Invenergy who passionately develop new renewable projects and thereby contribute to the climate transition.”

In other words, in the past year alone, Invenergy has received a US $4 billion infusion from CDPQ and now Blackstone.

That's significant capital to accelerate its renewables development activities.

But with long-term partners like CDPQ and Blackstone Infrastructure Partners, this company is set to expand its operations within North America and throughout the world.  

The platform is already in place, everything is in place to put this capital to work.

Equally interesting is the Energize Ventures fund Invenergy set up here.  

CEO Michael Polsky, and President and COO, Jim Murphy, are members of the Energize Ventures investment committee and help steer the direction of the fund. 

That tells me they very much want to be aware of the latest cutting edge technology which can disrupt their business.

Again, this is a smart long-term strategy, one that carries risks but also tremendous opportunities.

Alright, let me wrap it up there.

Below, learn more about how Invenergy is tackling energy storage problems. 

Also, Chris Bruce discusses how he left the auto industry to eventually join the energy transition industry at Invenergy.