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Fengate announces $100 million partnership and acquisition portfolio
Written By: Jen Neville
June 15, 2018
Fengate Real Asset Investments announced a $100 million equity commitment and co-development partnership with Texas-based PowerFin Partners and the acquisition of a 9.1 MWdc portfolio of operating solar projects in Austin and San Antonio, Texas, from PowerFin, as the seed investment.
The multi-year investment will fund the development and construction of PowerFin’s significant pipeline of solar projects in Texas. In addition, Fengate will exclusively invest in all the partnership’s solar projects over multiple years.
Greg Calhoun, Director, Infrastructure US, Fengate commented,
Fengate is pleased to partner with PowerFin to further expand our renewable energy platform in Texas, the fastest growing solar market in the United States. The solar projects that we are acquiring are very attractive assets with 20- and 25-year power purchase agreements from highly rated counterparties.” Greg added, “This investment will build and provide clean, reliable sources of energy, in partnership with one of the most experienced power developers and operators in Texas, and provide stable long-term cash flows for our investors.
Fengate is a leading investment firm specializing in real assets, with a focus on infrastructure, private equity and real estate, and with more than $2.8 billion total equity commitments to date, including a renewable energy portfolio comprising wind, solar, hydro and biomass projects across North America. This transaction represents Fengate’s third clean energy co-development partnership investment in North America — the second this year.
Fengate established itself as one of the most active real asset investors in North America and is currently leveraging the firm’s experience, relationships and track record to focus on expanding its US platform. Over the past eight months, Fengate has opened a new office in Houston; hired Greg Calhoun, formerly with BayernLB, to lead infrastructure investment activities, investor and partner relationships in the US market; relocated team members to the firm’s US offices; and brought onboard Martin Klepper, former head of the USDOT Build America Bureau, as Chairman of the Board, Infrastructure US.
“As a well-capitalized investment firm with meaningful experience investing in renewable energy and public-private partnerships, Fengate is an ideal investment partner for PowerFin’s fully integrated development, construction and operating approach to solar. Fengate’s ability to work with PowerFin from beginning to end provides a continuity and efficiency that is important to maintaining mutually beneficial relationships with property owners, utilities and their customers,” stated Tuan Pham, President of PowerFin. He added, “As solar becomes increasingly competitive with conventional power, responsibly balancing customer demands with utility policies will become increasingly critical.”