The Australian company announced on Tuesday that Macquarie Group’s (MQG.AX) opens new tab asset management division is acquiring a minority stake in D.E. Shaw’s green energy business for an equity investment of up to $1.73 billion.
The agreement is between funds managed by Macquarie Asset Management and D.E. Shaw Renewable Investments (DESRI), which, according to Macquarie, has more than 25 gigawatts in development pipeline. It is contingent upon regulatory approvals.
Macquarie’s investment is made at a time when high borrowing costs, persistent inflation, and growing geopolitical unrest are the main challenges facing multinational corporations.
The investment demonstrates the tremendous desire from businesses and governments to switch to greener energy sources and fight global warming.
William Demas, head of Macquarie Asset Management Green Investments for the Americas, stated, “We believe that this cooperation with DESRI well-positions Macquarie Asset Management to exploit this opportunity and help expedite the transition to net zero.”
“Suppliers and customers are looking for reliable partners who can develop and consolidate the market as the renewable energy sector grows.”
According to its website, DESRI has over 10 gigawatts of generation capacity and operates in 24 states.
The investment was initially covered by Bloomberg News earlier on Tuesday.
