FlexGen Receives $150 Million Funding from Apollo Global Management Affiliates

Apollo extends support for FlexGen's market-leading energy storage capabilities through the investment


Software technology provider for energy storage solutions, FlexGen Power Systems, has received a $150 million equity commitment from funds managed by the affiliates Apollo Global Management.

Denver-based venture capital firm, the Altira Group, which has invested over $1 billion with partners in over 60 companies and the initial investment group led by Mark Dreyfus and Jerry Miller will collaborate with Apollo on this investment.

FlexGen has supported the deployment of more than 1.2 GWh of energy storage systems for utility, microgrid, and commercial and industrial (C&I) customers both in the United States and internationally since its incorporation in 2009.

The company recognizes energy storage as a multi-billion-dollar sector. Energy storage integration necessitates software and technology solutions that play a crucial role in the widespread adoption of renewables by mitigating the grid’s intermittency and reliability concerns.

“Energy storage will play an important role in transitioning to an economy fueled by renewable energy. Our energy storage solutions will assist in bridging the reliability gap of the grid and speed up the adoption of clean energy,” said Olivia Wassenaar, Senior Partner and Co-Lead of Natural Resources at Apollo.

“Our cooperation with Apollo will enhance the capabilities we can offer going forward while creating the bankability that the market values and accelerate our growth,” said Kelcy Pegler, Jr., CEO of FlexGen.

Vinson & Elkins acted as legal counsel to the Apollo Funds. DLA Piper worked as legal counsel, and Citi was a financial advisor to FlexGen.

The investment in FlexGen is built on Apollo’s track record of investing in businesses supporting the clean energy transition.

In the last 18 months, Apollo Funds has invested in US Wind, electric-driven gas-compression company TOPS, and sustainable bio-energy producer AS Graanul Invest. Apollo funds also formed joint ventures with Johnson Controls and Great Bay Renewables.

The Apollo Fund-sponsored Spartan series of special purpose acquisition (SPAC) vehicles have announced or completed combinations with Fisker, an EV auto company; Sunlight Financial, a residential solar financing company; and most recently, Allego, a pan-European EV charging company.

According to Mercom Capital Group’s Q1 2021 Funding and M&A Report for Storage, Grid, and Efficiency, battery storage companies raised $994 million in VC funding, including private equity and corporate venture capital globally.

For more reports on M&A transactions and funding in solar, wind, energy storage, smart grid, and efficiency sectors, click here.


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