Macquarie will take a minority stake in D.E. Shaw's green power arm could be worth up to $1.73 billion

Macquarie Group’s asset management division has acquired a minority stake of the green energy arm of U.S.-based investor D.E. The Australian company announced on Tuesday that it would invest up to $1.73 billion in equity into D.E.

Macquarie Asset Management, a fund managed by Macquarie Asset Management, and D.E. Shaw Renewable Investments, or DESRI (Development Energy Services and Renewable Investments), has a pipeline of more than 25 gigawatts according to Macquarie.

Macquarie’s investment comes as global firms face the brunt geopolitical turmoil, high borrowing rates and sticky inflation.

This investment is a strong indication of the demand for cleaner energy sources and climate change from both corporations and governments.

William Demas is the head of Macquarie Asset Management Green Investments in the Americas. He said, "We are confident that our partnership with DESRI will allow Macquarie Asset Management the opportunity to seize this opportunity and accelerate the transition to zero net carbon emissions."

Suppliers and customers alike are looking for partners who can consolidate and scale the renewable energy market.

According to its website, DESRI has over 10 gigawatts in capacity across 24 states.

Bloomberg News reported the first on this investment on Tuesday. (Reporting by Rishav Chatterjee in Bengaluru; Editing by Shailesh Kuber)

(source: Reuters)