KKR is investing approximately $750m in Zenobē, a specialist in transport electrification and battery storage solutions, focused in the global decarbonisation of diesel fleets and providing grid services to aid the decarbonisation of the energy sector.
Infracapital, the infrastructure equity investment arm of M&G Plc and current majority shareholder, will invest further alongside KKR and the management team, with KKR and Infracapital becoming joint majority shareholders.
The transaction is subject to customary closing conditions and regulatory approvals.
KKR’s investment in Zenobē is the first to be made through the firm’s global climate strategy, which is part of KKR’s $54bn global Infrastructure business and dedicated to supporting the transition to a low-carbon economy.
Zenobē’s EV fleet business provides end-to-end solutions to transition conventional internal combustion engine vehicles to electric, including financing of chassis, batteries on the vehicles, and charging infrastructure in depots, complemented with an integrated software solution.
Through its network infrastructure business, Zenobē develops and builds large scale batteries that connect to transmission grids, providing essential grid services to complement the growth of intermittent low carbon energy generation and allowing economies to achieve their net zero ambitions, without compromising the grid stability.
KKR plans to work with Zenobē to meet the growing demand for EV adoption from bus operators and other commercial fleet businesses globally. KKR also expects to help Zenobē expand its grid-scale battery storage capacity through the construction and expansion of new and existing sites.