Private Credit and Energy Infrastructure: Apollo’s Strategic Move with RWE and the Future of Grid Modernization

In the evolving landscape of global energy infrastructure, private credit has emerged as a transformative force, bridging the gap between capital-intensive projects and the long-term financing solutions they require. Apollo Global Management’s recent €3.2 billion joint venture with RWE to support Germany’s energy transition exemplifies this shift. By acquiring a 25.1% stake in Amprion—a Transmission System Operator (TSO) serving 29 million people across seven German states—Apollo is not only aligning with the urgent need for grid modernization but also positioning itself at the forefront of a broader trend: the privatization of critical infrastructure through private credit.

Apollo’s Strategic Partnership with RWE: A Case Study in Grid Modernization

The partnership between Apollo and RWE is structured to fund Amprion’s decade-long grid expansion program, a cornerstone of Germany’s transition to renewable energy. With Apollo committing €3.2 billion in equity, the joint venture will provide the capital necessary to integrate intermittent renewable sources like wind and solar into the national grid, ensuring reliability and scalability [1]. Operationally, RWE retains control, leveraging its expertise in energy infrastructure while Apollo contributes its capital and strategic vision.

This move aligns with Apollo’s broader infrastructure strategy, which emphasizes deploying large-scale capital solutions to global infrastructure, particularly in Europe. The firm’s subsidiary, Apollo Infrastructure Company, has a proven track record in owning and operating infrastructure assets, and this partnership underscores its focus on regulated, cash-generating assets with long-term stability [5]. Apollo Partner Jamshid Ehsani highlighted that the investment reflects the firm’s commitment to deploying over $100 billion in Germany alone over the next decade, signaling confidence in the region’s energy transition [1].

Private Credit as the Engine of the Energy Transition

Apollo’s investment is emblematic of a larger industry-wide shift. Private credit, with its flexibility and capacity for tailored financing, is increasingly filling the void left by traditional banks, which often struggle with regulatory constraints and liquidity limitations in long-term infrastructure projects [2]. According to a report by S&P Global, private capital is pivotal in funding the future of infrastructure, particularly in sectors like renewables and digital infrastructure, where demand for patient capital is acute [3].

The scale of this transformation is staggering. By 2025, private markets—including infrastructure and private debt—are projected to grow from $13 trillion to over $20 trillion by 2030 [2]. BloombergNEF’s 2025 Energy Transition Investment Trends report notes that global investment in the energy transition hit $2.1 trillion in 2024, with renewables, energy storage, and hydrogen leading the charge [4]. Apollo’s €3.2 billion stake in Amprion is a microcosm of this trend, as it directly supports the electrification of industries, electric vehicles, and AI-driven energy demands—all of which require robust grid infrastructure [5].

Apollo’s Track Record and the Competitive Edge of Private Credit

Apollo’s success in infrastructure investments is not a one-off. The firm’s £4.5 billion financing deal for Électricité de France (EDF) in June 2025—supporting the Hinkley Point C nuclear power station—demonstrates its ability to secure large-scale, long-term capital for critical energy projects [1]. Additionally, Apollo’s acquisition of GFL Environmental Inc.’s environmental services business and its $370 million infrastructure credit portfolio from Banco Santander highlight its strategic diversification into sectors with predictable cash flows [3].

Private credit’s advantages over traditional financing are clear. Unlike banks, which often impose rigid terms and short-term liquidity constraints, private credit offers bespoke structures that align with the extended timelines of energy projects. For instance, Apollo’s partnership with Standard Chartered PLC to fund clean energy and transition assets—up to $3 billion in total—exemplifies how private credit can provide the patient capital needed for high-impact, long-term infrastructure [3]. This flexibility is critical for projects like Amprion’s grid expansion, which require sustained investment over a decade.

A Compelling Investment Opportunity

The Apollo-RWE joint venture is more than a strategic move; it is a harbinger of the future of energy infrastructure. As the International Energy Agency notes, electricity sector investment is projected to reach $1.5 trillion in 2025, driven by the need to decarbonize and digitize energy systems [5]. Apollo’s stake in Amprion positions it to capitalize on this growth, generating stable returns from a regulated asset base while contributing to Germany’s climate goals.

For investors, the case for private credit in energy infrastructure is compelling. The sector’s resilience—evidenced by the Global Private Markets Report 2025—shows that private equity and infrastructure investments outperformed the S&P 500 over the past 25 years, even amid macroeconomic volatility [1]. Apollo’s ability to navigate these challenges, combined with its focus on high-impact projects, makes it a standout player in a market poised for exponential growth.

Conclusion

Apollo’s €3.2 billion joint venture with RWE is a masterclass in leveraging private credit to accelerate the energy transition. By combining Apollo’s capital expertise with RWE’s operational strength, the partnership addresses a critical need: modernizing grids to support renewable energy integration. As private credit continues to outpace traditional financing in flexibility and scale, investments like these will define the next era of infrastructure development. For investors, the message is clear: the future of energy infrastructure is not just about sustainability—it’s about strategic, capital-efficient innovation.

Source:
[1] Apollo Commits €3.2 Billion to RWE Joint Venture Supporting the German Transmission Grid [https://www.globenewswire.com/news-release/2025/09/08/3145796/0/en/Apollo-Commits-3-2-Billion-to-RWE-Joint-Venture-Supporting-the-German-Transmission-Grid.html]
[2] 2025 Private Markets Outlook - Institutional - BlackRock [https://www.blackrock.com/ca/institutional/en/insights/private-markets-outlook]
[3] Apollo Global Management Bolsters Infrastructure Portfolio [https://www.ai-cio.com/news/apollo-global-management-bolsters-infrastructure-portfolio/]
[4] Energy Transition Investment Trends 2025 [https://about.bnef.com/energy-transition-investment/]
[5] Executive Summary – World Energy Investment 2025 [https://www.iea.org/reports/world-energy-investment-2025/executive-summary]