Australia's HMC Capital climbs as KKR commits investment for Energy Transition Platform

By Kumar Tanishk

Feb 6 (Reuters) - Australia's HMC Capital HMC.AX said on Friday it has struck a partnership that will see KKR-managed KKR.N funds invest up to A$603 million ($416.49 million) in preferred equity in its Energy Transition Platform, lifting its shares.

Shares of HMC rose as much as 7.7% to A$4.34, touching their sharpest intraday jump since November 28, 2025.

The investment, backed by KKR's Global Climate Transition strategy, will finance battery storage and wind projects essential for grid reliability and Australia's energy transition.

"The fact that they've done this shows what is happening globally, and that is that large companies are looking to reduce their energy costs," said Jessica Amir, a market strategist at trading platform MooMoo.

"We've already seen U.S. tech firms invest directly in energy, and now we're seeing an Australian home‑grown company take similar steps."

KKR will commit A$355 million initially, with up to A$248 million available as a follow-on investment to support the platform's 5.7-gigawatt development pipeline.

The transaction will reduce HMC Capital's investment in the platform to nearly A$200 million and allow the company to recognise an A$35 million capital charge in fiscal 2026.

HMC's founder and banker-turned-investor, David Di Pilla, said the investment validates the platform's quality and positions HMC to play a major role in Australia's net-zero transition.

Amir said the deal is likely to be seen as a long-term positive for loyal shareholders, particularly if HMC's property portfolio grows and its new energy assets eventually make a meaningful contribution to revenue.

The deal, subject to regulatory approvals, is expected to close in mid-2026.

($1 = 1.4478 Australian dollars)