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A newly established joint venture between alternative asset manager Apollo and energy company RWE will fund the latter’s stake in Amprion to support their investment programme for grid expansion in Germany.
Under the agreement, Apollo, on behalf of its managed funds and entities, will pay the €3.2 billion ($3.8 billion) to RWE in exchange for an equity stake in the newly established joint venture (JV).
This JV will hold RWE’s 25.1% stake in Amprion and RWE will receive the funds upfront, reinvesting the proceeds into Amprion through the JV as required to support its grid expansion programme.
RWE will retain operational control of the JV and continue to manage the Amprion stake while consolidating the JV in its financial statements. Dividends from Amprion will be shared between RWE and Apollo.
Apollo, leveraging its capital and infrastructure-focused investment expertise, will act as a long-term partner to RWE.
Commenting in a release was Apollo partner Jamshid Ehsani: “This partnership with RWE will help fund long-term capex for critical grid expansion in Germany to power homes and industry, and it underscores our focus on delivering tailored capital solutions to leading global companies and essential infrastructure.
“It also reflects Apollo’s commitment to strong, lasting partnerships across both the private and public sectors. Looking ahead, we expect to further accelerate our investment activity in Europe, with a particular focus on Germany, France, Italy and the UK.”
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Apollo’s infrastructure investments
Since 2020, says Apollo, the company has originated more than $100 billion of bespoke, high-grade solutions, including for European companies and European assets such as EDF, BP, Vonovia, Air France-KLM, AB InBev and Intel’s Fab 34 in Ireland, among others.
Earlier this year, the Firm announced that it expects to deploy more than $100 billion in Germany alone over the next decade, helping to meet market demand for long-term financing and investments.
Amprion in a separate release called the transaction a sign of confidence in their performance, welcoming Apollo as a new investor.
The TSO also cited Apollo Global Management’s extensive experience in infrastructure investments, saying it “suits very well with the transmission system operator’s long-term business model”.
Stakes held in the joint venture between RWE and Apollo have not been disclosed and the transaction is subject to regulatory approvals and customary closing conditions. It is expected to close in the fourth quarter of 2025.
The M31 Beteiligungsgesellschaft will continue to hold the remaining 74.9% stake in Amprion.
German grid financing
Germany’s power grid requires extensive capital to keep it reliable as renewable energy sources continue to come online.
Amprion – which spans across seven German federal states and serves approximately 29 million people and industrial corporations – is one of four TSOs overseeing transmission in the country and has plans to invest approximately €36.4 billion ($42.7 billion) in expanding its grid by 2029.
Another TSO, TenneT, which oversees transmission in both Germany and the Netherlands, has also been exploring strategies to source capital for its comprehensive grid extension plans – €200 billion ($234.5 billion) in grid enhancements and expansion in both countries.
To support its cross-country investment needs, the company underwent restructuring into two entities, with the Dutch side looking for an investment partner.
