Brookfield to acquire Aypa Power in $7B BESS agreement

EXECUTIVE SUMMARY

Brookfield Asset Management, a New York-headquartered alternative asset manager with more than $1 trillion in assets under management, has entered into an agreement to acquire Aypa Power from funds managed by Blackstone Energy Transition Partners. The transaction values Aypa at approximately $7 billion in enterprise value at closing, with an equity value of $3 billion.

Aypa Power develops, owns and operates utility-scale energy storage and hybrid renewable energy projects across North America. Since its first project in 2018, the company has expanded to 35 projects in operation or under construction. Its portfolio includes approximately 6.5 GW of operating, under-construction and contracted battery storage capacity, along with a development pipeline exceeding 20 GW.

Under the agreement, Brookfield will acquire Aypa’s operating, under-construction and contracted projects, its development platform and approximately 200 employees. The acquisition will expand Brookfield’s presence in the North American BESS market across the United States and Canada.

Around 95% of Aypa’s operating and under-construction portfolio is contracted under long-term agreements with investment-grade customers. These agreements have an average remaining contract life of 17 years. Aypa also has capabilities in project siting, transmission analysis, procurement and contracting.

Brookfield plans to support the development of Aypa’s pipeline through its operating, development, procurement, financing and commercial capabilities. The investment is being pursued through the second vintage of Brookfield’s global transition strategy alongside institutional partners, including Brookfield Renewable Partners.

Jehangir Vevaina, Chief Investment Officer in Brookfield’s Energy group, said: “We are excited to partner with Aypa to deliver on the company’s scale growth pipeline. Battery storage is increasingly critical to the reliability and resilience of today’s energy systems, and bringing together this leading platform with Brookfield’s broad capabilities across technologies and geographies further strengthens our ability to deliver integrated energy solutions to the world’s largest buyers of power.”

Moe Hajabed, Founder and Chief Executive Officer of Aypa Power, said: “This is an extraordinary achievement for the team that built Aypa. Over the past six years, with Blackstone's partnership, we grew Aypa into the largest and most valuable storage-focused independent power producer in North America. Together, we helped establish battery storage as critical infrastructure, essential to a more reliable and resilient grid. I look forward to seeing Aypa flourish further under Brookfield’s ownership.”

Bilal Khan, Senior Managing Director, and Mark Zhu, Managing Director at Blackstone, said: “We invested in Aypa based on our conviction that battery storage would become increasingly critical to supporting grid reliability and meeting growing electricity demand from AI and other use cases. Since then, the company has established itself as the leading battery storage platform in North America, supported by a premier development pipeline and strong customer relationships. We are proud to have partnered with Aypa and its exceptional management team, and look forward to its next phase of growth with Brookfield.”

The transaction remains subject to customary regulatory approvals. Cantor Fitzgerald & Co. acted as lead financial adviser to Aypa and Blackstone, with BofA also serving as financial adviser. Kirkland & Ellis acted as legal counsel to Aypa and Blackstone, while White & Case advised Brookfield.