Funds managed by Blackstone Credit & Insurance, Apollo and insurance vehicles and accounts managed by KKR have entered into a $5.3 billion joint venture with Williams, an energy infrastructure company based in the US.
| Deal-at-a-glance | |
|---|---|
| Acquirer: | Funds managed by Blackstone Credit & Insurance, Apollo and insurance vehicles and accounts managed by KKR |
| Target: | Williams (NYSE: WMB) |
| Type: | Joint venture |
| Value: | $5.3 billion |
| Closing date: | 2026-07-13 |
| Announcement date: | 2026-07-13 |
| Sell-side advisors: | Citi |
| Buy-side advisors: | Morgan Stanley, Citi |
| Legal buy: | Kirkland & Ellis |
| Legal sell: | Davis Polk & Wardwell |
Deal Mechanics
The joint venture agreement stipulates that the Blackstone-led group will provide $5.34 billion for a 49% equity interest in Williams' Power Innovation projects, supporting their development and enhancing project returns. Under the terms of the deal, distributions align with ownership interests, ensuring both parties receive proportional benefits.
Strategic Rationale
The investment aims to bolster the growth potential of Williams' Power Innovation initiatives by leveraging Blackstone's financial expertise and Apollo & KKR’s insurance vehicles. This partnership is expected to accelerate project development timelines while increasing overall returns for both entities involved.
Financial Context
The venture will enable Williams to tap into deep pools of capital, aiding in the expansion of its Power Innovation portfolio. With the backing of Blackstone and other investors, Williams can focus on executing large-scale projects more efficiently and securing future funding rounds with greater ease.
Advisors
Morgan Stanley and Citi acted as buy-side advisors to the funds managed by Blackstone Credit & Insurance, Apollo and KKR. Davis Polk & Wardwell provided legal counsel on behalf of Williams, while Kirkland & Ellis represented the buyer.
Outlook
This strategic joint venture positions both entities well for future expansion in renewable energy infrastructure, highlighting a commitment to sustainable growth within the sector. Additionally, Williams retains operational control and has an exclusive buyout right between years 7 and 14 of the partnership.