KKR & Co Inc, a US-based private equity firm, has announced its plans to invest an additional $250 million in Serentica Renewables, an Indian decarbonisation platform. This new investment will support the company's goal of achieving 4,000MW of installed renewable energy capacity that will aid clean energy delivery to large-scale industrial customers. In November 2022, KKR had already agreed to invest $400 million in Serentica, along with billionaire Anil Agarwal's Twinstar Overseas Ltd.
Serentica Renewables, founded just last year, focuses on industrial decarbonisation by making renewables the primary source of energy for commercial and industrial sectors that consume over 50% of India's electricity. The company recently signed new Power Delivery Agreements (PDAs) to provide continuous green energy to some of India's leading industrial customers. It is currently constructing solar and wind power projects in Maharashtra, Rajasthan, and Karnataka.
According to Reuters, India's renewable energy sector has been attracting increasing foreign investment, with a 5% share of all inflows from April to September 2022, compared to 3.3% in the same period a year ago. Serentica Renewables is contributing to this trend and is receiving support from KKR & Co, which has been investing heavily in the renewable energy industry.
In April 2023, KKR & Co also announced its acquisition of a significant portion of FGS Global, a deal valued at nearly $1.4 billion. As part of this agreement, KKR acquired a 30% investment in FGS Global from senior personnel, while the company's biggest investors, including Martin Sorrell's WPP Plc, retained a majority position. KKR is investing in FGS Global through its $8 billion European Fund VI and will own 100% of the company, following Golden Gate Capital's decision to sell its entire interest to KKR.
The recent investments by KKR & Co in Serentica Renewables and FGS Global demonstrate the private equity firm's commitment to investing in the renewable energy sector and building sustainable, decarbonised industries.
