Australia

KKR Acquires Australian Power Producer Zenith Energy

Published JUN 17 2025

Story

Above: A photo illustration of the KKR & Co. Inc. logo on a smartphone screen, on April 26, 2025. Image credit: Cheng Xin/Getty Images

The Facts

Global private equity firm KKR has agreed to acquire Australian energy producer Zenith Energy from a consortium including Pacific Equity Partners, the OPSEU Pension Trust, and Foresight Group Holdings, with the transaction set to close in late 2025.
Bloomberg.com
Reuters
As determined by contracted supply in the mining and property sectors, Zenith is Australia's largest independent power producer, supplying 710 megawatts across 15 sites in Western Australia and the Northern Territory, and specializes in providing remote areas with sustainable and hybrid power solutions.
DealStreetAsia
Business Wire
CNBC
During the bidding process, KKR reportedly faced competition from rival private equity firms EQT Partners and CVC and is understood by the Australian Financial Review to have bought Zenith. No official figure, however, has been provided.
Australian Financial Review
Axios
Stockhead
Bloomberg.com
KKR's managing director for Australia and New Zealand infrastructure, Andrew Jennings, said that Zenith was "an ideal investment" for its Asia Pacific Infrastructure Investors II Fund, which closed at $6.4 billion last year, as part of its $13 billion regional infrastructure platform.
KKR
DealStreetAsia
Zenith CEO Hamish Moffat claimed that the investment would "accelerate our growth and ability to service large-scale projects with a broad capital base" and support new opportunities in the decarbonization of mining. The company also confirmed that its current leadership would remain unchanged.
Business Wire
Zenith Energy Australia
Reuters
The acquisition follows Zenith’s completion of an AU$1.9 billion refinancing and expansion of its bank debt facilities, providing the company with over AU$1 billion in capital to support the development of new energy projects.
Business Wire
Reuters

Sources Split

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RIGHT

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CRIT

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ESTAB

The Spin

Narrative A

KKR's investment in Zenith Energy is a smart acquisition that will revolutionize the company. The investment, combined with the capital Zenith has raised through refinancing and restructuring its existing bank debt facilities, will provide Zenith with the funds it needs to service large-scale infrastructure projects and growth — enabling the company to explore new opportunities, especially in mining.

KKR

Zenith Energy Australia

Narrative B

Deals like this highlight concerning trends in private equity's infrastructure grab. While the acquisition may benefit Zenith's growth, it places key national infrastructure in the hands of a firm with neither a sense of social responsibility nor attachment to Australia. In doing so, deals like this turn infrastructure from a public good into a source of profits, usually at the expense of working people.