KKR has agreed to acquire a KRW348bn ($235m) stake in South Korean renewable energy company SK Eternix, increasing its exposure to climate and environmental investments despite heightened market volatility linked to the Iran war, according to a report by Bloomberg.
The US private equity firm will reportedly purchase a combined 43.5% stake in SK Eternix from SK Discovery and local private equity firm Hahn & Co. The deal will see SK Discovery sell its entire 30.98% holding, while Hahn & Co will divest its 12.52% stake.
SK Eternix is part of the SK Group conglomerate, which also owns semiconductor manufacturer SK Hynix. SK Discovery reportedly said that the sale reflects the capital-intensive nature of renewable energy projects, which typically require significant upfront investment and generate returns gradually through power sales.
The transaction forms part of KKR’s broader push into climate-related investments. Since 2010, the firm has committed approximately $44bn to climate and environmental strategies and has backed renewable energy businesses including ContourGlobal, Avantus and Encavis.
