First State Investments (FSI), a global investor in infrastructure, and Energy Capital Partners (ECP), a power and renewables private equity investor, say FSI is acquiring a 40% stake in Terra-Gen from ECP. The terms of the agreement were not disclosed.
Terra-Gen, based in New York, develops, constructs and operates utility-scale wind, solar, energy storage and geothermal electrical generation facilities throughout the U.S. Terra-Gen’s portfolio spans more than 30 generating facilities located primarily in California, with additional locations in Colorado, Minnesota, Nevada, New York, Texas and Wyoming. The company currently operates more than 1,600 MW of facilities and has more than 3,000 MW of projects under advanced development.
The acquisition is the third direct infrastructure investment in the U.S. by FSI. The company manages more than $8 billion of unlisted infrastructure investments globally with a focus on mid-market companies in the transportation, utility and renewables sectors worldwide. The firms expect to complete the transaction in the fourth quarter or early 2021, subject to regulatory approvals.
“Terra-Gen has a strong, established and diverse platform of renewable energy assets, along with a demonstrated track record of developing and operating projects in California and other attractive markets,” says John Ma, head of FSI’s direct infrastructure team in North America.
“We are excited to partner with ECP and the management team to help execute Terra-Gen’s business plan,” he adds.
Investment highlights include:
- -Mature asset base with a diverse portfolio of renewable technologies
- -Large wind portfolio with a long operating history and incumbent locations in California, the largest and most advanced U.S. renewable market with scarce new wind resources
- -Operating and advanced stage development battery storage projects poised to capitalize on California’s significant and increasing need for flexible dispatch resources
- -Strong contracted revenue base, with opportunity for additional value-added contracting
- -Scalable platform and robust near-term growth pipeline
Citi and PJ Solomon served as financial advisors to ECP, with Latham & Watkins LLP acting as lead transaction counsel. Macquarie Capital served as financial advisor to FSI, with Mayer Brown LLP as lead transaction counsel.
Photo: FSI’s Responsible Investment web page