(Bloomberg) -- Blackstone Group Inc. will invest as much as $500 million in the solar equipment manufacturer Array Technologies Inc.
Funds managed by Blackstone Energy Partners will buy $350 million in preferred stock from the Albuquerque, New Mexico-based solar company and retain the option to purchase an additional $150 million before July 2023, the companies said in a statement. Bilal Khan, a senior managing director at Blackstone, will join Array's board as part of the deal.
Blackstone, the world's largest alternative-asset manager, has made several bets on companies focused on supporting a transition to cleaner energy. The firm has also recently invested in energy-infrastructure company Sabre Industries Inc. and solar company Altus Power America.
Array, a provider of solar-tracking systems for ground-mounted solar farms, went public last year amid a surge in interest for renewable-energy investments. But the stock has tumbled in recent months amid rising steel and freight costs.
Read more: Solar Power's Decade of Falling Costs Is Thrown Into Reverse
“Array has set itself apart from others,” said Blackstone's Khan in an interview. “In a very turbulent time in supply chains, Array has been able to consistently deliver their product to customers.”
Array plans to use proceeds from the deal to repay debt and fund growth initiatives.
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