Funds managed by affiliates of Apollo Global Management Inc. (NYSE: APO) have made a $150 million equity commitment to FlexGen Power Systems Inc., an integration services and software technology provider for energy storage services in the US and globally.  Apollo’s investment will be made in partnership with FlexGen’s existing investors, Altira Group and the founding investment group led by Jerry Miller and Mark Dreyfus.

Kelcy Pegler, CEO of FlexGen, commented, “Our work with Apollo will accelerate FlexGen’s growth, and the capabilities we can offer going forward while establishing the bankability that the market values when making energy storage investments. We are well-positioned at the most critical intersection of the clean energy transition—energy storage. We have spent the past decade building the most advanced integration solutions in the market—and now that market is ready to take-off. I’m excited to have Olivia and the rest of the Apollo team’s support in building on FlexGen’s mission to deliver utility-scale storage that drives forward the clean energy transition.”

Olivia Wassenaar, senior partner and co-lead of natural resources at Apollo, said, “Energy storage assets play a crucial role in the transition to an economy powered by intermittent renewable energy sources. This transition to renewable power is happening at a time where reliability and resiliency are more important than ever for the grid in the face of increasing extreme weather events. FlexGen’s energy storage solutions bridge the gap of reliability for the grid and help accelerate the adoption of renewables by shifting renewable power consumption to times when it is needed most. We are impressed with the business that the entire FlexGen team has built and see continued tailwinds for the Company as the industry evolves.”

Apollo Partner Trevor Mills added, “We are excited to work with Kelcy, Yann, Pasi, Alan, and the entire FlexGen team to support their continued growth. We see tremendous opportunities for growth and technological innovation in the energy storage sector as the grid relies increasingly on renewable energy. FlexGen’s engineering expertise and leading HybridOS software solution position it as an ideal partner for those looking to develop and operate energy storage systems.”

The investment in FlexGen is part of Apollo’s track record of investing in and lending to companies supporting the clean energy transition. Over the past 18 months, Apollo Funds have invested in US Wind, an offshore wind developer; entered into a new venture with Johnson Controls to provide sustainability and energy efficiency services; formed a joint venture to accelerate the growth of renewables royalties company Great Bay Renewables; invested in electric-driven gas compression company TOPS; and agreed to invest in sustainable bioenergy producer AS Graanul Invest. The Apollo Fund-sponsored Spartan series of special purpose acquisition vehicles have agreed to or completed combinations with Fisker, an EV auto company; Sunlight Financial, a residential solar financing fintech, and most recently Allego, a leading pan-European EV charging company.

Vinson & Elkins LLP acted as legal counsel to the Apollo Funds. DLA Piper LLP acted as legal counsel and Citi acted as financial advisor to FlexGen.