White & Case Advises EnCap Investments on the US$1 Billion Sale of Broad Reach Power

Global law firm White & Case LLP has advised EnCap Investments L.P., a leading provider of growth capital to the independent sector of the US energy industry, on its agreement to sell the battery storage business of Houston-based Broad Reach Power from EnCap Energy Transition Fund I, and its co-investment partners Yorktown Partners, Mercuria Energy and Apollo Infrastructure Funds (the "Apollo Funds"), to French multinational utility company, ENGIE, for a total equity value in excess of US$1 billion.

Since Broad Reach was founded in 2019 with backing from EnCap, it has become a leading US developer and operator of renewable energy and energy storage power projects in Texas, California and other markets.

The sale to ENGIE includes 350 MWs of grid-scale battery assets in operation and 880 MWs under construction mainly in the Electric Reliability Council of Texas (ERCOT) territory, with commissioning expected before the end of 2024. The acquisition also includes a 1.7 GW pipeline of battery storage projects at an advanced stage of development and a significant pipeline of early-stage projects. The first CAISO storage asset is expected to be operational in 2023.

Apollo Funds acquired a 50 percent stake in the company and joined the board in December 2021.

The White & Case team was led by M&A partners Mingda Zhao, Emery Choi (both in Houston), Michael Shenberg and Ipek Candan Snyder (both in New York). The M&A team also included associates Kabir Phaguda, Luis Leos, Helen Xiang, Leslie Lin, Amrita Mohan (all in Houston), Matt Anderson, Shirley Zhang, Ren-Ann Wang, Eliot Murphy (all in New York) and Mario Olczykowski (Mexico City); Project Development and Finance partners Elena Maria Millerman (New York) and Fern Han (Houston), and associates Mallika Singh, Joan Martinez, MinJoo Lee (all in New York), Gabrielle Goodrow (London) and John Forbush (Washington, DC); Environment & Climate Change partner Taylor Pullins (Houston); Real Estate partner Steven Lutt and associate Julianna Prisco (both in New York); Tax partners Jeffrey Davis (Washington, DC), David Dreier, and associate Grayson Weeks (both in New York); Employment, Compensation & Benefits partner Henrik Patel, counsels Kenneth Barr (both in New York) and Samantha Rozell (Chicago) with associate Anthony Veveakis (New York); Antitrust partner Rebecca Farrington (Washington, DC); Technology Transactions partner Linda Sim (Los Angeles) and associate Jarrah Al-Buainain (New York); Data, Privacy & Cybersecurity partner F. Paul Pittman (Washington, DC); International Trade partners Richard Burke, Keith Schomig and associate Jason Burgoyne (all in Washington, DC); with Foreign Direct Investment partners Farhad Jalinous and Karalyn Mildorf (both in Washington, DC). Law clerks Debra Ellis, Will Davidson and Jack Hobbie assisted on the matter.

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