Blackstone (NYSE: BX), the world’s largest alternative assets manager, has taken a $300 million stake in Sydney-based energy transition infrastructure services business Symphony Infrastructure Partners.
The investment is part of a $488 million Series A fundraising round for Symphony which also includes a $188 million senior debt facility from the Commonwealth Bank (ASX: CBA).
Chief executive Steve Butler founded Symphony in 2022 to invest in accelerating Australia’s transition to renewable energy generation. The company develops, owns and operates specialised services critical to the energy transition including grid connection infrastructure.
Butler said partnering with Blackstone would bring “incredible scale and access to capital”.
The funding from Blackstone and the Commonwealth Bank will enable Symphony to complete the pending acquisitions of five new portfolio companies to establish one of Australia’s leading independent energy infrastructure services platforms.
Blackstone said its investment would provide Symphony with capital to complete the acquisitions “and also involves a commitment of funding towards the future growth of the company”.
Blackstone’s head of private equity for Australia and New Zealand, Michael Blickstead, said: “We are pleased to partner with the management team to take Symphony on its next chapter of growth and contribute to Australia’s energy transition.”
Managing director in Blackstone’s Tactical Opportunities division, Daniel Kearns said energy transition was a major investment theme for Blackstone globally and in Australia which was still in the early stages of its energy transition journey.
Commonwealth Bank general manager corporate finance Jade Astbury said: “Accelerating the energy transition and scaling up domestic renewables capability and capacity is integral to our transition to a sustainable economy. Symphony has demonstrated leadership and vision and this transaction is a fantastic example of how financing private enterprise is helping capture opportunities in greening the grid.”
Blackstone has already invested in Australian companies supporting the energy transition including Xpansiv, an infrastructure platform for global carbon and environmental commodities, which it acquired in 2022, and Energy Exemplar, a global provider of energy market simulation software, which it acquired in partnership with Vista Equity Partners last year for $1.6 billion.
Blackstone acquired its stake in Symphony in an auction process conducted by Lazard Australia. The new HMC Capital (ASX: HMC) Energy Transition Fund is believed to have also made a last round offer for Symphony.
Symphony’s financial adviser on the transaction was Lazard Australia and its legal advisers Allens and Kain Lawyers.
Image: Symphony chief financial officer Nathan Gooley and chief executive Steven Butler.