Private Equity Firm KKR Invests $250 Million in Serentica Renewables to Boost India's Renewable Energy Capacity

Private equity firm KKR & Co Inc has announced an additional $250 million investment in Serentica Renewables, an Indian decarbonisation platform. This latest funding will support the company's effort to achieve 4,000MW of installed renewable energy capacity and to make renewables the primary source of energy for India's commercial and industrial sectors, which consume over 50% of the country's electricity. The investment by KKR follows a deal in November 2022, in which the private equity firm agreed to spend $400 million on Serentica.

Serentica Renewables is currently building solar and wind power projects in Maharashtra, Rajasthan, and Karnataka. The company recently agreed to a new set of Power Delivery Agreements (PDAs) to provide top industrial customers with continuous green energy. This will ensure that India's commercial and industrial sectors are more environmentally friendly and sustainable.

India's renewable sector has been attracting increased foreign investment, making it among the top five industries for overseas funds in the last fiscal year. The country has set ambitious targets to reduce carbon emissions, and as a result, there is a growing demand for renewable energy. KKR's investments in the renewable energy sector reflect the growing interest in green energy and the transition to a low-carbon economy.

In addition to its investment in Serentica Renewables, KKR has also agreed to purchase a sizable portion of FGS Global, a deal valued at nearly $1.4 billion. As part of the agreement, KKR will acquire a 30% investment in FGS Global from senior personnel, while the company's biggest investors, including WPP Plc, will continue to hold a majority position. Golden Gate Capital has sold its whole interest to KKR, which is investing in FGS Global through its $8 billion European Fund VI.

FGS Global is a leading provider of offshore oil and gas production services, and the investment by KKR represents a shift in focus toward renewables. This move by KKR indicates that the company is positioning itself to take advantage of the growing interest in renewable energy and the transition to a more sustainable future.

KKR's investment in Serentica Renewables will not only help the company achieve its goal of 4,000MW of installed renewable energy capacity, but it will also contribute towards India's efforts to achieve its renewable energy targets. The country has set a goal to achieve 450GW of installed renewable energy capacity by 2030, which includes 280GW of solar energy, 140GW of wind energy, and 10GW of bioenergy. Achieving these targets will help India reduce its dependence on fossil fuels and move towards a cleaner, more sustainable future.

Overall, KKR's investments in the renewable energy sector demonstrate the growing interest in green energy and the transition to a low-carbon economy. With its investments in companies like Serentica Renewables and FGS Global, KKR is positioning itself to take advantage of this trend and support the transition to a more sustainable future. As governments around the world set ambitious targets for reducing carbon emissions and achieving net zero, the demand for renewable energy is expected to continue to grow.

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