Macquarie Asset Management ( MAM ) is acquiring a significant minority stake in D. E. Shaw Renewable Investments ( Desri ), a renewable energy company that develops, owns, and operates utility-scale solar, wind, and battery storage projects across the United States.

The US$1.725 billion investment will enable Desri to pursue its growth plans and enhance its market-leading position. Lazard served as financial adviser and King & Spalding acted as legal adviser to MAM. For Desri, Goldman Sachs served as financial adviser while Skadden, Arps, Slate, Meagher & Flom was the legal adviser.

The MAM managed funds ­­include the Macquarie Global Infrastructure Fund, Macquarie Green Energy and Climate Opportunities Fund and Macquarie Energy Transition Infrastructure Fund International.

Desri‘s platform currently has over 6 gigawatts of gross capacity of projects in operations or under construction, 4GW of contracted pre-construction projects, and a development pipeline of over 25GW. The company operates across all stages of a project’s life cycle, including development, construction, and operations.

The company also has long-term power purchase agreements with a diversified base of offtakers, including corporates, utilities, and cooperatives in 24 states. The Desri platform will complement MAM’s existing 12GW of operational project capacity.

“We are excited to invest in Desri, an energy transition platform of scale with a proven, highly-regarded management team and a large base of operating assets which we expect will grow over the medium term through the successful completion of late-stage projects,” says Christopher Frost, senior managing director, at MAM Real Assets. “This transaction underscores [Macquarie Global Infrastructure Fund’s] objective of expanding our global portfolio of diversified core infrastructure assets.”

William Demas, head of MAM Green Investments for the Americas, adds: “With the growth of the renewable energy market, suppliers and customers are seeking trusted partners that can scale and consolidate the market. We believe that this partnership with Desri well positions [MAM] to capture this opportunity and help accelerate the transition to net zero.”