Storage Integrator FlexGen Bags $150 M Investment from Apollo Funds

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Apollo Global Management, an alternative asset management group, has announced a $150 million equity commitment to FlexGen Power Systems, a leading integration services and software technology provider for energy storage solutions 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.

Energy storage represents a multibillion-dollar market at the center of the energy transition. The integration of energy storage requires software and technological solutions that play a critical role in the adoption of renewables at scale—offsetting the intermittency and reliability challenges that renewable power generation creates for the grid.

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Since its founding in 2009, FlexGen power has supported deployments of more than 1.2 GWh of energy storage systems across the U.S. and internationally for utility, microgrid, and C&I customers. The company’s proprietary software platform allows energy storage owners to deploy various power market strategies and combine storage solutions with any form of generation.

Kelcy Pegler, Jr., 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.”

FlexGen supports the customer across the full journey of developing an energy storage project, and the company’s HybridOS solutions include six distinct energy management solution applications including: DigitalTwin, FlexPack, SiteController, FleetManager, PowerCloud and FlexBidr. FlexGen’s existing investors include Altira Group, the founding investor group led by Jerry Miller and Mark Dreyfus, Caterpillar Ventures, and GE Ventures.

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Apollo Partner Trevor Mills added, “We see tremendous opportunities for growth and technological innovation in the energy storage sector as the grid relies increasingly on renewable energy.”

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 announced 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.