Ares-managed funds to buy majority stake in Apex Clean Energy

Funds managed by Ares Infrastructure and Power Group will acquire a majority stake in Apex Clean Energy Inc. for undisclosed terms.

The deal will give Apex additional capital to support its transition to a pure-play renewable power producer, according to an Oct. 6 company news release. The transaction is scheduled to close before the end of 2021, subject to certain conditions and approvals.

The Ares Management Corp. subsidiary and Apex have previously collaborated on renewable projects. In February, Apex agreed to sell its 302-MW Lincoln Land Two Wind Project in Morgan County, Ill., to funds managed by Ares. The companies also partnered on the 525-MW Aviator Wind Project in Texas, which started commercial operation in 2020.

"Apex and Ares are aligned on a common mission to accelerate the shift to clean energy," said Mark Goodwin, president and CEO of Apex Clean Energy.

The existing management team of Apex will retain their current roles.

Lazard served as lead financial advisor, CohnReznick Capital served as financial adviser, while Orrick Herrington & Sutcliffe LLP served as outside counsel to Apex. Nomura Greentech served as financial adviser to Ares and Kirkland & Ellis LLP served as outside counsel to Ares on the transaction.

A consortium of co-investors, including the EGCO Group, Varma Mutual Pension Insurance Co., Clal Insurance & Finance, Menora Mivtachim Group, ST International Corp., investors represented by Morgan Stanley Investment Management's Portfolio Solutions Group, The Hartford, Poalim Equity and IMM Investment Global are participating in this transaction through funds and other co-investment accounts managed by Ares.