Global mid-market infrastructure fund manager CVC DIF is acquiring a majority stake in Low Carbon, a renewable energy company backed by Massachusetts Mutual Life Insurance Company (MassMutual).
CVC DIF, through the DIF Infrastructure VIII fund, will commit primary equity, via both common and preferred shares, resulting in the firm taking a majority controlling stake in Low Carbon.
The undisclosed investment amount from CVC DIF, when combined with follow-on investment from existing shareholder MassMutual, the refinancing of existing project finance debt and the raising of an additional corporate finance facility, will collectively secure around £1.1bn (€861m) in committed capital for Low Carbon.
Low Carbon, which currently manages a 16GW pipeline and a 1GW operational and under-construction asset base, plans to use the CVC DIF capital to grow its presence in core markets like the UK, Germany and Poland.
The company aims to bring a 3GW portfolio of operational utility-scale solar, onshore wind, battery storage and co-located assets online in these regions in the coming years.
Insurer MassMutual, a significant shareholder in Low Carbon after forming a strategic partnership in 2021, will continue to support the growth of the business with additional investment.
Roy Bedlow, founder and CEO of Low Carbon, said: “I would like to thank CVC DIF and their investors for the confidence they have placed in Low Carbon and our ability to develop, build and operate high-quality renewable assets in the UK and Europe.
“In addition, MassMutual’s continued investment in Low Carbon underlines our shared ambition of delivering long-term value across the full investment cycle of renewables that will help accelerate our goal to deploy renewable energy at scale to help tackle climate change.”
Caine Bouwmeester, partner and head of renewable energy at CVC DIF, said: “This investment reflects our shared conviction in the critical role renewables will play in the energy transition. Low Carbon’s talented team, strong culture and disciplined development strategy position it to lead the next phase of growth in the sector.
“Together with Roy, his team, MassMutual, and our highly supportive co-investors, we look forward to building on this momentum and generating attractive risk-adjusted returns for our investors.”
Drew Dickey, head of alternative investments at MassMutual, said: “Significant strides have been made since our original investment in Low Carbon to distinguish it as a top performing renewable energy company. We welcome the combination of capital and experience that CVC DIF brings to Low Carbon, which will provide important leadership to the buildout of our ambitious pipeline of renewable energy projects.”
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