KKR & Co. will acquire a 348 billion won ($235 million) stake in South Korean renewable energy firm SK Eternix Co., marking a significant expansion of its climate and environmental investments. The US buyout firm is purchasing a combined 43.5% stake from SK Discovery Co. and local private equity firm Hahn & Co., according to a statement by SK Discovery.

SK Eternix, part of the SK Group conglomerate, has seen its shares jump as much as 13.8% in Seoul following the announcement. SK Discovery is selling its entire 30.98% holding while Hahn & Co. divests its 12.52% stake. The sale reflects the capital-intensive nature of renewable energy, requiring significant upfront investment with returns recouped gradually through power sales.

Since 2010, KKR has committed about $44 billion to climate and environmental investments, backing renewable energy platforms including ContourGlobal, Avantus, and Encavis. The transaction comes amid market volatility stemming from the Iran war, demonstrating KKR's continued appetite for dealmaking despite geopolitical tensions. SK Discovery has also approved a mid-term shareholder return plan, including buying back and canceling an additional 60 billion won of treasury shares over the next three years.