General Electric announced in an 8 October press release that it has agreed to sell an energy asset portfolio worth approximately US$1bn to investment firm Apollo Global Management
While the portfolio is worth an estimated $1bn, full financial details of the transaction have not been made public.
The portfolio is comprised of equity investments in around 20 renewable energy assets, contracted natural gas fired generation and midstream energy infrastructure assets located largely in the US.
GE’s press release said that the deal marks what it hopes will be the beginning of an ongoing relationship with Apollo in relation to new energy infrastructure investments in the future.
“The sale of this Equity Portfolio reflects ongoing progress executing GE Capital’s strategy, and enables us to continue to deliver on our commitments and provide value to GE,” said Alex Burger, president of GE Capital.
“The Apollo Funds are an ideal buyer for these assets with a disciplined investment approach and experience managing complex alternative investments.”
Apollo will add this portfolio to its existing assets, estimated to be worth $270bn as of June this year.
Senior partner at Apollo, Geoffrey Strong, said:
“We believe this transaction provides us with a unique opportunity to acquire a diversified portfolio of high-quality energy infrastructure assets with attractive risk-adjusted return profiles.”
“In addition, we look forward to working with GE’s team on future energy infrastructure investment opportunities.”
GE recently replaced its CEO with Larry Culp in an unexpected move that saw its share price gain a healthy boost.