Zenith Energy Sold to KKR in Strategic Deal
Deal News | Jun 18, 2025 | Pacific Equity Partners Pty Lt
Pacific Equity Partners Secure Assets Fund I (PEP SAF I) has agreed to sell its entire stake in Zenith Energy Pty Ltd, a leading independent power producer in Australia, to KKR & Co. Inc. This transaction, set to complete in the fourth quarter of 2025, involves Zenith's significant operations delivering hybrid power solutions in remote areas and urban microgrids. PEP, Australia's largest private equity firm, alongside OP Trust and Foresight, acquired Zenith in 2020. Under PEP's ownership, Zenith expanded its renewable energy capacity considerably. Zenith serves key industries, including mining, through a portfolio of renewable and thermal energy solutions, meeting increasing demands for cost-effective and sustainable energy. PEP has a strong track record with a 28% average net IRR per annum, showcasing a legacy in strategic acquisitions and divestments.
Sectors
- Private Equity
- Energy
- Mining
Geography
- Australia – Zenith Energy operates in Australia and the Pacific Equity Partners, the firm selling Zenith, is headquartered in this region.
- Sydney – The transaction announcement came from Sydney, where PEP is based.
Industry
- Private Equity – The article discusses Pacific Equity Partners, a leading private equity firm managing the sale of one of its portfolio companies.
- Energy – Zenith Energy operates in the energy sector, focusing on delivering renewable and hybrid power solutions.
- Mining – Zenith provides power solutions to off-grid mining operations, a critical sector in Australia.
Financials
- A$16 billion – Assets under management by Pacific Equity Partners.
- 28% Net IRR p.a. – Average net internal rate of return achieved by Pacific Equity Partners on closed-end funds.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Pacific Equity Partners Pty Ltd | Seller | Company | Australia's largest private equity firm managing the sale of Zenith Energy. |
| Zenith Energy Pty Ltd | Target | Company | Leading Australian independent power producer specializing in renewable energy solutions. |
| KKR & Co. Inc | Buyer | Company | Global investment firm buying Zenith Energy. |
| OPSEU Pension Trust | Previous Co-Investor | Company | Joint investor in Zenith Energy alongside PEP. |
| Foresight | Previous Co-Investor | Company | Formerly ICG, a co-investor in the acquisition of Zenith Energy with PEP. |