Infrastructure fund manager Ardian is expanding its clean energy portfolio in Latin America through the acquisition of a 73.4MW hydropower company in Peru from funds managed by BTG Pactual, Patria Investments and GMR Holding.
Ardian has invested an unspecified amount through its Ardian Clean Energy Evergreen Fund (ACEEF) to acquire the company that owns a portfolio of six fully-operational run-of-river hydroelectric power plants. The plants have energy purchase and sale contracts awarded by the Peruvian government.
ACEEF is an open-ended clean energy fund launched in April last year. The fund, which has AXA Group as a cornerstone investor, is targeting €1bn for its first investment cycle.
At the time, Ardian said ACEEF intends to invest up to €150m for each transaction as it targets “mature renewable technologies” including solar, wind and hydroelectric, as well as “emerging technologies” such as biogas, biomass, storage and energy efficiency.
Ardian said the latest investment improves ACEEF’s portfolio by adding geographical and technological diversification, improving the portfolio’s contracted revenue profile and consolidating the fund’s renewable energy presence in Latin America.
Benjamin Kennedy, managing director of renewables infrastructure at Ardian, said: “This transaction marks our first hydro investment for the fund. This hydro portfolio diversifies our technological mix by adding a strategic and complementary technology.
“We are also incorporating a highly capable management team on the ground that will strengthen Ardian’s industrial asset management expertise and support our long-term capital deployment strategy.”
Emilio Andrade, director of infrastructure at Ardian, said: “This is our fourth direct renewable energy investment in Latin America, continuing our opportunistic approach in the region and complementing our overall renewables strategy.
“Considering our track record in Peru and the quality of the acquired portfolio, we are confident that we will continue to deliver strong risk-adjusted returns to our investors.”
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