New York-based alternatives investment firm Apollo has agreed to commit €3.2 billion ( US$3.77 billion ) of equity to a newly established joint venture with RWE, Germany’s largest power producer and a global leader in renewable power generation.

The JV will be operationally controlled by RWE and hold and fund RWE’s 25.1% stake in Amprion, a transmission system operator ( TSO ) spanning across seven German federal states and serving approximately 29 million people and industrial corporations.

The JV will support Amprion’s major investment programme for grid expansion over the next decade. The M31 Beteiligungsgesellschaft continues to hold the remaining 74.9% stake in Amprion.

Amprion plans to invest €36.4 billion in expanding its grid by 2029.

Latham & Watkins and Paul, Weiss, Rifkind, Wharton & Garrison are serving as legal counsel to the Apollo funds.

Subject to regulatory approvals, the agreement is expected to close in the fourth quarter of 2025.

Offshore wind power

The German government has ambitious plans to enhance grid infrastructure, including transmitting energy from offshore wind projects in the north of the country to major industrial consumers in the south, and takes a positive view of international private sector involvement.

Since 2020, Apollo has originated more than US$100 billion, including for European companies and assets such as EDF, BP, Vonovia, Air France-KLM, AB InBev, and Intel’s Fab 34 in Ireland. Earlier this year, the firm announced that it expects to deploy more than US$100 billion in Germany over the next decade, helping to meet market demand for long-term financing and investments.

The JV is supported by reliable and stable dividend returns from Amprion’s regulated asset base. For RWE, the partnership also aligns with its strategy to grow its generation portfolio of renewables, batteries, and flexible generation assets, while focusing on its core activities of power generation and energy trading.

“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," says Apollo partner Jamshid Ehsani.