Target Information

Apollo Global Management (NYSE: APO) announced on October 6, 2025, that it has reached an agreement for Apollo-managed funds to acquire Eagle Creek Renewable Energy ("Eagle Creek" or the "Company"), a prominent independent operator of hydroelectric facilities in the United States. The financial details of the transaction remain undisclosed.

Eagle Creek operates a significant portfolio consisting of 85 hydroelectric facilities distributed across 18 states, playing a crucial role in providing renewable energy to meet increasing demand from sectors such as data centers and the Industrial Renaissance in the U.S. With nearly 700 MW of installed capacity, Eagle Creek is one of the largest and most diverse independent hydro platforms nationwide, generating enough electricity to power over 260,000 households.

Industry Overview

The renewable energy sector in the United States has seen unprecedented growth, particularly in hydropower, which stands out as a low-carbon, reliable energy source with firm power capabilities. The demand for clean energy continues to escalate, driven by policy changes and advancements in technology aimed at reducing carbon footprints and enhancing energy security.

Hydropower is uniquely positioned to contribute significantly to the U.S. energy mix, particularly as the country strives to meet its climate goals. With increasing investments funneling into sustainable energy solutions, hydropower facilities are becoming essential not just for their power generation capabilities but also for their ability to provide stability to the electricity grid.

Given the U.S.'s expansive waterways and existing hydroelectric infrastructure, the country possesses considerable potential to expand hydropower generation further. New initiatives are emerging to upgrade existing facilities and construct new ones, ensuring that hydropower maintains a critical role in the nation's energy landscape.

This rapid evolution in the energy landscape reflects a broader commitment to an energy transition, making investments in renewable projects more attractive than ever. Investors are increasingly recognizing the long-term financial and environmental benefits of incorporating renewable energy sources into their portfolios.

Rationale Behind the Deal

The acquisition of Eagle Creek represents a strategic move for Apollo to enhance its investment in the growing renewable energy sector. With rising energy demands and a shift towards low-carbon solutions, hydropower presents a significant opportunity for growth and resilience within the energy market.

The transaction is expected to leverage Apollo's extensive network and industry expertise, enabling Eagle Creek to accelerate its expansion and enhance its capabilities in delivering reliable renewable power. This alignment underscores Apollo's commitment to supporting companies that play a transformative role in the energy transition.

Investor Information

Apollo Global Management is a leading global alternative asset manager, with over $840 billion in assets under management as of June 30, 2025. Over its 30-year history, Apollo has focused on delivering superior returns across various investment risk profiles, including private equity, credit, and real estate, while providing innovative solutions to the businesses it invests in.

The firm's commitment to sustainable investing is reflected in its substantial investments in energy transition projects. Since 2022, Apollo-managed funds and affiliates have invested approximately $59 billion in energy transition-related initiatives, underscoring their strategic focus on sustainability and long-term growth.

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This acquisition could prove to be an astute investment for Apollo, considering the robust demand for renewable energy and the vital role of hydropower in the U.S. energy mix. The strong operational track record of Eagle Creek, combined with Apollo's proven expertise and capital resources, positions them favorably to capitalize on emerging opportunities in the sector.

The alignment of this deal with broader trends in energy transition signifies a foresight on Apollo's part, recognizing hydropower not just as a current asset but as a fundamental component of future energy strategies, especially given governmental pushes towards sustainable energy.

Furthermore, as more businesses move towards carbon neutrality, investment in clean energy sources will increasingly gain traction among savvy investors, further enhancing the appeal of this acquisition. If managed well, Eagle Creek has the potential to expand its portfolio and contribute significantly to meeting the growing energy needs of the U.S.

In summary, the acquisition is positioned not just as an investment in an existing portfolio but as a strategic amplification of Apollo's commitment to sustainable energy solutions that promise reliable financial returns in line with progressive market trends.

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