KKR has agreed to acquire Zenith Energy, a leading Australian provider of sustainable and hybrid energy solutions, from a consortium of existing investors including Pacific Equity Partners (PEP), OPSEU Pension Trust (OPTrust), and Foresight Group, according to a report by Reuters.
The deal marks another major infrastructure investment in the Asia-Pacific region by the US-based private equity giant.
While financial terms of the transaction have not been disclosed, another report by Bloomberg said two unnamed people close to the deal claimed that KKR paid AUD1.7bn at 12 times contracted earnings.
As part of the transaction, Zenith’s founder and management team will retain a minority stake, maintaining strategic continuity and operational leadership.
According to Hamish Moffat, CEO and Managing Director of Zenith, the partnership with KKR will bolster the company’s capacity to deliver on larger-scale energy projects. “There are significant and immediate opportunities inherent in the decarbonisation of Australia’s mining sector, which Zenith is uniquely positioned to deliver,” Moffat said.
The acquisition follows Zenith’s recently completed AUD1.9bn refinancing and debt expansion, which will support ongoing and future project development. Zenith currently operates over 710MW of contracted capacity across approximately 15 remote and off-grid sites, primarily in Western Australia and the Northern Territory.
The deal is expected to close in late 2025, subject to customary regulatory approvals.
KKR, which had $166bn in capital invested and a portfolio of over 225 companies as of March 2025, continues to ramp up its exposure to infrastructure and energy transition assets globally. The firm has been especially active in the renewables and decentralised energy segments, viewing them as long-term growth themes in the region.
