Soon after making a voluntary takeover offer to Spanish solar power developer and independent producer Solarpack in June 2021, Swedish private equity firm EQT has now turned to the US where it has agreed to acquire Cypress Creek Renewables from certain funds managed by HPS Investment Partners and Temasek (see Private Equity Firm Wants To Take Over Spain's Solarpack).
The US based Cypress Creek is a utility scale and distributed solar+storage project developer with 1.6 GW of operational assets in 25 states. It previously had an internal EPC division which it did away with in 2019 under its Go Forward strategy to focus on core business of development, financing and operating solar and storage projects under new management (see Cypress Creek Renewables To Eliminate EPC Division).
EQT said it will support the US developer's continued growth and strategic vision through development pipeline executive, fleet optimization and expansion, and scaling of the operations and maintenance (O&M) services business. Cypress Creek added that it will also benefit from EQT's global advisor network and in-house digitalization and sustainability expertise.
With its EQT Infrastructure V fund agreeing to acquire the US company, Cypress Creek sees itself strongly positioned in its next phase of growth that of investing in a 'multi-year growth plan'. Cypress Creek CEO Sarah Slusser said, "With EQT, we will accelerate our sustainable growth in developing the highest-value solar and storage energy projects, providing best-in-class O&M services for ourselves and our customers, and expanding our fleet of operating assets."
EQT said the investment in Cypress Creek aligns with its thematic approach of investing in 'sustainable businesses that have a positive impact on society'. This transaction, subject to necessary approvals, is expected to have EQT Infrastructure V fund to be 35% to 40% invested based on its target fund size.
Singapore based Temasek joined hands with EQT in January 2020 for a $500 million India focused renewable energy platform O2 Power for 4 GW solar, wind and hybrid power capacity in the Asian nation (see New Renewable Energy Platform For India Launched).