Sandbrook Capital has partnered with the Public Sector Pension Investment Board (PSP Investments) and the Investment Management Corporation of Ontario (IMCO) to buy German renewable-energy company NeXtWind Capital.
Sandbrook and the Canadian pension investors have agreed to buy the Berlin-based start-up from a Crestline Investors-led consortium, in a deal that will see the new owners commit up to $750m (€683m) of equity to NeXtWind to acquire its existing portfolio of operating wind assets and to fund future growth.
NeXtWind specialises in acquiring and repowering onshore wind farms and the deal is intended to help it grow and become a “leading renewable energy company in Germany and beyond”, the companies said.
Ken Ryan, co-founder and partner at private investment firm Sandbrook, said: “We are thrilled to partner with the NeXtWind management team, as well as PSP Investments and IMCO, to grow this platform in Germany.
“We have been looking to enter this space for several years and are confident we have the right team and capital base to become a leading player in the German renewables market.”
Patrick Samson, SVP and global head of real assets investments at PSP Investments, said: “Onshore wind repowering represents an important lever in enabling Germany’s energy transition.
“We are proud to join forces with NeXtWind’s highly experienced team to deliver on their repowering strategy and to reinforce our commitment to using capital and influence to support the transition to global net-zero emissions by 2050.”
Matthew Mendes, managing director and head of infrastructure at IMCO, said: “This is IMCO’s first investment in the German wind-energy sector, and demonstrates our commitment to boost renewable-energy production and enable the global energy transition, in alignment with IMCO’s climate action plan.”
Ewald Woste, co-founder of NeXtWind, managing partner of NeXtWind Management and member of the board of NeXtWind Capital, said: “We have been focused on the repowering opportunity in Germany for over six years now.
“With this newly announced acquisition and partnership, we have the capital to match our business development and operational expertise and grow the amount of renewable energy produced from older wind sites, helping the energy transition and also increasing Germany’s energy security.”
Michael Guy, CIO of Crestline Europe, said: “As the lead investor in the first funding round raised by NeXtWind, we identified a best-in-class team and an important market opportunity with the complexity, scale and attractive risk return characteristics that we look for in our investment set.”
To read the latest edition of the latest IPE Real Assets magazine click here.
