Generally Energy

GE unloads $1B energy assets portfolio to Apollo

The changes continue at General Electric, and there appears to be no end in sight. It seems like we alternate every other week reporting something major from the once-revered, now-questionable industrial giant. This week’s portion: energy assets. One billion dollars worth of which were unloaded as GE sold its energy portfolio Apollo Global Management, a private equity company located in New York City.

GE Capital announced the definitive agreement October 8 via press release. Apollo Funds will acquire an approximately $1 billion portfolio, including assumed obligations, of predominantly equity investments in energy assets from GE Capital’s Energy Financial Services unit. The Equity Portfolio comprises approximately 20 investments in renewable energy, contracted natural gas fired generation and midstream energy infrastructure assets, primarily in the US.  In connection with this transaction, the parties will seek to form an ongoing relationship with respect to select future new energy infrastructure investments.  Financial details of the transaction are not disclosed.

Alec Burger, President of GE Capital, said, “The sale of this Equity Portfolio reflects ongoing progress executing GE Capital’s strategy, and enables us to continue to deliver on our commitments and provide value to GE.  The Apollo Funds are an ideal buyer for these assets with a disciplined investment approach and experience managing complex alternative investments.”

GE Energy Financial Services said it continues to invest in and structure third party financial solutions for GE’s power and renewable energy customers, globally.

“We believe this transaction provides us with a unique opportunity to acquire a diversified portfolio of high-quality energy infrastructure assets with attractive risk-adjusted return profiles,” said Geoffrey Strong, Senior Partner at Apollo. “In addition, we look forward to working with GE’s team on future energy infrastructure investment opportunities.”

Apollo is designated as a “global alternative investment manager” and the company also has offices in Los Angeles, Houston, Bethesda (MD), London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong and Shanghai. Some of Apollo’s other subsidiaries include ADT Security Services, Redbox movie vendors, and Qdoba restaurants.

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