Global investment firm KKR is investing up to A$603 (about $416 million) in the energy transition platform of HMC Capital, an Australia-listed alternative asset manager, according to an announcement.
KKR-managed funds will become a strategic partner alongside HMC in the platform’s existing 652 megawatts of operating assets and a 5.7 gigawatt development pipeline spanning battery energy storage systems (BESS) and wind projects, per the announcement.
The companies said the investment would support expansion of the platform, including the development of new battery storage and wind projects aimed at improving grid reliability.
Shares of HMC rose as much as 7.7% to A$4.34 on Friday following the announcement, marking their highest intraday jump since November 28, 2025, according to Reuters.
The investment also comes as Australia steps up spending on battery storage and other flexible assets needed to keep the power grid stable, while more wind and solar generation come online.
“KKR’s investment validates the quality of the platform we have built and sets the foundation for HMC to play a major role in Australia’s transition to net zero carbon by 2050,” said David Di Pilla, HMC Capital managing director and CEO.
KKR said it is funding the investment from its Global Climate Transition strategy and has committed more than $44 billion to climate and environmental sustainability investments since 2010.
It said the deal is its second climate investment in Australia, following CleanPeak, an Australian distributed energy platform.
Neil Arora, a KKR partner and head of the firm’s climate transition strategy for Asia, said Australia’s power system was at a “pivotal moment” and that delivering the country’s ambitions would require investment in flexible infrastructure.
“We are well-positioned to scale this platform and contribute meaningfully to Australia’sdecarbonization objectives,” Arora said.
The transaction is expected to close in mid-2026, subject to customary regulatory approvals, the firms said.
HMC Capital, an ASX-listed diversified alternative asset manager, manages about A$19 billion across strategies including real estate, private equity, energy transition, digital infrastructure, and private credit.
KKR’s investment comes as the firm secured an additional $548 million for its third pan-Asia infrastructure fund in the fourth quarter of last year, highlighting robust investor demand for the asset class, which drove its rapid fundraising pace in Oct-December 2025.
Asia Pacific Infrastructure Investors III, which is reportedly targeting a corpus of over $9 billion, has now secured $3.5 billion in total commitments after the US-based megafund disclosed the fund’s capital-raising progress for the first time in the previous quarter.
