Over the weekend, Swedish real assets and private equity investor EQT announced that its fifth infrastructure fund (EQT Infrastructure V), has agreed to buy Cypress Creek Renewables, an Asheville, North Carolina-based, vertically integrated solar energy platform. The sellers are HPS Investment Partners and Singapore sovereign wealth fund Temasek.
Price and other deal terms were not made public. Following the close of the transaction, which is expected to take place in the second half of 2021, EQT Infrastructure V is expected to be 35-40 percent invested based on its target fund size, and pending customary regulatory approvals.
The Cypress Creek deal marks EQT’s first-ever acquisition of a U.S. renewables firm. Cypress Creek operates in 25 U.S. states, with 1.6GW in operating assets, and a commercialization track record of 11GW since its inception in 2014. The company offers a full suite of services across utility-scale and distributed solar and storage assets, with a robust pipeline of future development and O&M services opportunities.
“Cypress Creek plays a critical role in North America’s renewable energy development and infrastructure market,” EQT Infrastructure partner Alex Darden said in a comment on the acquisition. “Its platform is optimally situated to benefit from tailwinds of increasing and durable demand for clean and responsible energy. EQT is excited to invest in and partner with CEO Sarah Slusser and the entire Cypress Creek team as the Company pursues its next phase of growth and strategic vision. This investment aligns directly with our thematic approach of investing in sustainable businesses that have a positive impact on society. As a responsible investor, we are committed to working with Cypress Creek on transforming and supporting North America’s green energy future.”
“Cypress Creek Renewables is thrilled to have EQT backing our talented team and multi-year growth plan, centered on our mission of powering a sustainable future, one
In 2020, Cypress Creek Renewables added 397 MW of utility-scale and distributed solar projects to the grid across the states of Maryland, New York, North Carolina, South Carolina and Texas. Its single-largest solar project to date, the 162 MW Wagyu solar PV project in Brazoria County, Texas (near Houston), became operational in November 2020. The project, which has the unusual combination of being backed by a 15-year corporate power purchase agreement (PPA) with Starbucks as well as a 12-year physical hedge with energy major BP, is owned by Cubico Sustainable Investments, a leader and global investor in renewable energy that is jointly owned by Canada’s Ontario Teachers’ Pension Plan and PSP Investments.
