Funds managed by affiliates of Apollo Global Management announced a $150 million equity commitment to FlexGen Power Systems, an integration services and software technology provider for energy storage in the U.S. and globally.
Apollo’s investment will be made in partnership with FlexGen’s existing investors, Altira Group and the founding investment group led by Jerry Miller and Mark Dreyfus. Existing investors also include Caterpillar Ventures, and GE Ventures.
Since its founding in 2009, FlexGen has supported deployments of more than 1.2 GWh of energy storage systems for utility, microgrid, and commercial and industrial customers.
Kelcy Pegler, Jr., CEO, said the financing will accelerate the company’s growth and help establish the bankability “that the market values when making energy storage investments.”
Olivia Wassenaar, senior partner and co-lead of Natural Resources at Apollo, said that her group see “continued tailwinds for the company” as the industry evolves.
The company’s products include six energy management applications, including DigitalTwin, FlexPack, SiteController, FleetManager, PowerCloud and FlexBidr.
Over the past 18 months, Apollo Funds have invested in US Wind, an offshore wind developer; entered into a new venture with Johnson Controls to provide sustainability and energy efficiency services; formed a joint venture to accelerate the growth of renewables royalties company Great Bay Renewables; invested in electric-driven gas compression company TOPS; and agreed to invest in sustainable bioenergy producer AS Graanul Invest.
Vinson & Elkins LLP acted as legal counsel to the Apollo Funds. DLA Piper LLP acted as legal counsel and Citi acted as financial advisor to FlexGen.