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Report: Blackstone, NextEra among those circling NRG's renewable platform

A sale launched by NRG Energy Inc. to divest its interest in NRG Yield Inc. and its broader renewables platform has attracted interest from several large strategic, financial and institutional buyers, according to a Aug. 10 report from Bloomberg.

The generator's decision to sell its renewable platform followed a business review process recommending a broader asset sale process targeting $4 billion in proceeds. As part of the multipronged effort, the company enlisted advisors from Citigroup to sell up to a 100% equity interest in NRG Yield and the renewable development pipeline, in an effort seeking to capitalize on robust investor interest for the fixed-contract wind and solar assets.

As expected, potential suitors have swarmed. According to the Bloomberg News report, the sale has fetched interest from blue chip financial and infrastructure players including Blackstone Group LP, KKR & Co. LP, GIC Private Ltd., Global Infrastructure Partners, Borealis Infrastructure Management Inc. and John Hancock Life Insurance Co. (USA).

NextEra Energy Inc., itself a majority owner of its yieldco NextEra Energy Partners, is also said to be in the fold, the report added.

Additionally, buyers may look to team up and acquire subsets of the NRG renewables portfolios, according to the report, consistent with buy-side strategies contemplated in the broader market for power portfolios.

NRG management on its most recent earnings call indicated it expects the sale processes could conclude by the end of 2017, at the earliest.