TPG Rise Climate, the climate investment arm of buyout company TPG, is currently in discussions to acquire US-based solar projects developer Altus Power, Reuters reported, citing unnamed sources.
The negotiations could lead to a formal agreement in the forthcoming weeks, the sources stated. However, a deal has not been finalised, and there remains the possibility of no transaction materialising.
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Altus Power supplies clean energy to both commercial and residential properties and is recognised as one of the largest owners of commercial-scale solar plants in the country. It has been weighing a potential sale since October.
Established in 2009, the company manages solar power installations and offers energy storage and vehicle charging solutions.
Altus Power’s portfolio produces around 1GW of power.
The largest shareholder in Altus is CBRE Group, holding a 15.38% stake, while Blackstone’s energy division has a 13.2% stake, having provided financial support during the company’s SPAC merger deal.
Altus Power went public through its $1.5bn merger with CBRE Acquisition Holdings (CBAH), a special purpose acquisition company (SPAC), in 2021.
In the third quarter of 2024, Altus Power’s net profit rose over 26% to $8.6m while its revenue grew 30% to $58.7m.
TPG Rise Climate is part of TPG’s Rise Funds, which support companies that facilitate social and environmental impact. Last year, Altus Power acquired True Green Capital Management’s (TGC) 220MW solar asset portfolio for $293m.
