KKR and PSP Investments acquire stake in AEP’s transmission assets

Investment funds managed by KKR and the Public Sector Pension Investment Board (PSP Investments) have agreed to acquire a 19.9% stake in American Electric Power’s (AEP) Ohio and Indiana & Michigan transmission companies for $2.82 billion.

KKR and PSP Investments have established a 50/50 strategic partnership to complete the acquisition. The investment will support AEP in addressing increasing customer demand and improving grid reliability. AEP will retain majority ownership and operational control of the transmission assets post-transaction.

KKR is a global investment firm specializing in alternative asset management, while PSP Investments, one of Canada’s largest pension investors, manages $264.9 billion in net assets as of March 2024, with a diversified portfolio spanning various asset classes.