Strategic View:
KKR and HASI (Hannon Armstrong) have committed an additional $1 billion to their co-investment platform, CarbonCount Holdings. This “Club of Two” focuses on scalable sustainable infrastructure projects in the US. The reload proves the efficacy of the “Capital Flywheel” model, where specialized originators partner with mega-funds to lower the cost of capital for green energy.
Full Story:
The partnership between global investment firm KKR and climate solutions investor HASI has intensified, with the duo committing an additional $1 billion to their co-investment platform, CarbonCount Holdings 1. This “Club of Two” is reshaping how large-scale sustainable infrastructure is funded in the US, proving that the energy transition is now a mature, industrial-scale asset class.
Originally established to invest in clean energy projects, the platform has outperformed expectations, prompting this massive capital reload. The structure allows HASI to originate high-quality assets (solar, wind, energy efficiency) and hold them on its balance sheet while syndicating a portion of the equity risk to KKR’s massive infrastructure funds. This creates a “capital flywheel”* where HASI can punch above its weight class, and KKR gets access to proprietary, pre-vetted deal flow without building a massive internal origination team.
Furthermore, this deal reflects the maturing of the “Energy Transition” sector. It is no longer about experimental tech; it is about deploying billions into proven generating assets with predictable cash flows. The syndicate effectively lowers the cost of capital for green projects across the US grid. By sharing the risk, both firms can maintain diversification while deploying capital at a pace that matches the urgent demands of the US energy grid modernization.
However, the competition for these assets is fierce. Consequently, having a pre-committed club deal structure allows CarbonCount to move faster than competitors who must raise project-specific financing. This speed of execution is a critical competitive advantage in the renewable energy development game.
Why It Matters:
Capital efficiency in climate finance is paramount. This co-investment model allows specialized originators (HASI) to scale indefinitely by tapping into the deep pockets of mega-funds (KKR). It validates the “Platform” approach over the “Project” approach for infrastructure investing.
Source(s):
HASI and KKR Commit Additional $1 Billion to CarbonCount Holdings
Definitions:
*Capital Flywheel: A self-reinforcing loop where capital efficiency drives growth, which in turn attracts more capital.
*Origination: The process of creating or identifying new investment opportunities.
