SB Energy, SoftBank Group’s U.S. Renewable Energy Platform, Announces Strategic Equity Investment in Ares Management
Leading Climate Infrastructure Technology Platform to Accelerate Growth and Deliver Flexible Renewable Generation at Scale
SB Energy Global, LLC (“SB Energy”) today announced that funds managed by Ares Management Corporation (“Ares”) infrastructure and energy strategy are leading a strategic equity investment of up to $600 million dollars, including capital from potential co-investors, in SB Energy, the U.S. climate infrastructure technology platform of SoftBank Group Corp. (“Soft Bank”). Funds managed by Ares committed the majority of the funding, with the balance expected to come from co-investors. This investment brings together two leading investors in climate technology and infrastructure to drive innovation and deployment of clean energy at scale.
Michel Combes, CEO of SoftBank Group International, said, “SoftBank launched SB Energy to accelerate access to reliable, cost-effective and renewable energy. The combination of AI and technology with the deployment of large-scale renewable energy is essential to energy transformation and benefits people around the world. Our new Ares investment brings together Ares’ climate infrastructure experience, SoftBank’s artificial intelligence and technology ecosystem, and SB Energy’s track record of execution into a single platform to deliver a large scale flexible renewable energy.
SB Energy has rapidly expanded its Climate Infra-Tech platform with plans to deliver 10 gigawatts (GW) of renewable energy and storage projects in operation or under construction by the end of 2025. Since launching in the US market in 2019, the company completed the development, financing and construction start-up of nearly 1.7 GW of utility-scale solar projects, of which 1.3 GW currently provides clean, reliable power in Texas and California.
SB Energy continues to aggressively grow its pipeline of renewable energy and storage projects through new site development, partnerships and acquisitions, while also expanding its digital and technology capabilities. In addition to capital from SoftBank and Ares, SB Energy has partnered with leading financial institutions to secure more than $4 billion in tax equity and project financing since its inception to develop and build renewable projects and to invest more in the clean energy transition.
“We are proud to announce the investment of funds from Ares, which launches a new chapter for SB Energy and an expansion of our collaboration with Ares that began in 2020,” said Rich Hossfeld, co-CEO of SB Energy. . “With the support of Ares and SoftBank, SB Energy will rapidly scale our strategic platform in renewable energy, storage and new digital products as the developer, owner and operator of the next generation of infrastructure and climate technologies.”
“We are excited to work with SB Energy to leverage our combined strengths in driving the clean energy transition,” said Andrew Pike, Partner and Co-Head of Ares Infrastructure and Power. “Our investment in SB Energy builds on our existing relationship and reflects our commitment to supporting high-quality climate infrastructure platforms through our innovative capital solutions.”
“Ares and SB Energy share a commitment to accelerating the transition to a low-carbon economy through the development of critical climate infrastructure,” said Ares Infrastructure and Power Partner Mike Roth. “With the additional flexible capital support from Ares, SB Energy is well positioned to meet the growing demand for clean and sustainable energy and build on its strong track record, including having brought nearly 2 GW of solar energy in just two years.”
Milbank LLP served as outside advisor to SB Energy, Kirkland & Ellis LLP served as outside advisor to the funds managed by Ares, and Morrison & Foerster LLP served as outside advisor to SoftBank on the transaction.
About SB Energy
SB Energy is a leading utility-scale solar, energy storage and technology platform, backed by SoftBank Group Corp. and funds managed by Ares Management Corporation’s Infrastructure and Power strategy. We develop, build, own and operate some of the largest and most technically advanced renewable energy projects in the United States. SB Energy’s mission is to deliver flexible renewable energy at scale, accelerating the global energy transition and benefiting our planet, customers, communities and people. For more information, visit SBEnergy.com.
About SoftBank Group
The SoftBank Group invests in advanced technology to improve the quality of life for people around the world. The SoftBank Group consists of SoftBank Group Corp. (TOKYO: 9984), an investment holding company that includes stakes in telecommunications, internet services, AI, smart robotics, IoT and clean energy technology providers; the SoftBank Vision Funds, which invest more than US$140 billion to help extraordinary entrepreneurs transform industries and shape new ones; the US$5 billion SoftBank Latin America Fund, the region’s largest venture capital fund; the US$3 billion SoftBank Latin America Fund II; and the SB Opportunity Fund, a US$100 million fund that invests in black, Latino and Native American founders in the United States. To learn more, please visit https://group.softbank/fr.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager providing clients with complementary primary and secondary investment solutions across the asset classes of credit, private equity, real estate and infrastructure. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of December 31, 2021, Ares Management Corporation’s global platform had approximately $306 billion in assets under management, with approximately 2,100 employees operating in North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.