Alternative asset management firm TPG announced today an agreement to Altus Power, the largest owner of commercial-scale solar in the U.S., in an all-cash transaction valuing the company at $2.2 billion.

Founded in 2009, Stamford, Connecticut-based Altus Power develops, owns and operates commercial-scale solar arrays, in addition to energy storage and charging infrastructure, to provide clean electric power to businesses, towns and homes. The company generates solar power in 25 states across the U.S., with a portfolio exceeding 1 GW.

TPG will acquire Altus Power through its TPG Rise Climate Transition Infrastructure strategy. Launched in early 2021, TPG Rise Climate invests in climate solutions around the world, and across asset classes and sectors ranging from growth equity to value-added infrastructure, with investments focusing areas including energy transition, green mobility, sustainable fuels and carbon solutions. The strategy is part of TPG’s $18 billion global impact investing platform, TPG Rise. In early 2024, TPG launched a Transition Infrastructure strategy within TPG Rise Climate, led by Scott Lebovitz, Managing Partner and Head of Infrastructure.

Lebovits said:

“We are excited to partner with Altus Power, which has established itself as a leader in commercial scale, clean power solutions with an exceptional track record of growth.”

According to Altus Power, the transaction will help the company to scale its operations more rapidly, addressing “surging demand for increased power generation.”

Gregg Felton, CEO of Altus Power, said:

“We are incredibly excited to partner with TPG Rise Climate to continue to build our position as the leading commercial-scale provider of clean electric power to businesses and households from coast to coast. TPG Rise Climate’s deep expertise in the clean energy sector, investment-oriented mindset and value-driven approach to infrastructure development aligns perfectly with our vision. This partnership strengthens our ability to serve both our Community Solar and commercial clients with clean electric power at a time when demand for power is expected to grow substantially.”