Apollo Global Management Sees Opportunity in Royalty Financing in Renewables

Posted on 10/17/2020

Apollo Global Management, through its affiliates and funds, formed a joint venture with Altius Renewable Royalties, a unit of listed company Altius Minerals Corporation. The JV acquired a stake in Portsmouth, New Hampshire-based Great Bay Renewables, LLC, through a unique structure. Great Bay will use the proceeds to invest in prominent renewable energy development platforms in North America. Great Bay provides strategic capital to renewable energy developers.

Apollo Global Management seeks to invest up to US$ 200 million and will have the opportunity to buy up to a 50% stake in Great Bay Renewables. Under the agreement structure the Apollo Funds will solely fund the next US$ 80 million in approved investment opportunities in Great Bay Renewables Inc., which is the U.S. based operating subsidiary of Altius Renewable Royalties, in exchange for a 50% stake in Great Bay Renewables, with opportunities thereafter funded equally by the Apollo Funds and Altius Renewable Royalties and with an equally shared governance structure. Apollo Funds have disclosed that they expect to invest up to US$200 million in Great Bay Renewables.

Since its 2017 inception, Great Bay has invested more than $60 million in developers such as Apex Clean Energy and Tri Global Energy.

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