Fengate Real Asset Investments has entered into a US$100 million equity commitment and co-development partnership with PowerFin Partners, an Austin, Texas-based solar power developer and operator. The deal includes as a seed investment Fengate’s acquisition of a 9.1 megawatt DC portfolio of operating solar projects in Texas. It will also see Fengate invest in the development and construction of PowerFin’s pipeline of projects over multiple years. Fengate, a Toronto-based investor in infrastructure, private equity and real estate, said the clean-energy partnership transaction is its third in North America and second this year.
Fengate announces $100 million co-development partnership with PowerFin,and acquires portfolio of operating solar assets in Texas
Texas-based investment is latest development with Fengate’s strategic expansion in the US market
Houston, Texas, June 11, 2018 (GLOBE NEWSWIRE) — Fengate Real Asset Investments (“Fengate”) is pleased to announce a $100 million equity commitment and co-development partnership with Texas-based PowerFin Partners (“PowerFin”) 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.
“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,” said Greg Calhoun, Director, Infrastructure US, Fengate. “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 has 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.”
Fengate is a leading investment firm specializing in real assets, with a focus on infrastructure, private equity and real estate. With offices in Toronto, Oakville, Vancouver, Houston and New York, Fengate has a proven track record of successful projects and results-driven partnerships, establishing the firm as one of the most active real asset investors in North America. Through our experience, expertise and industry relationships, our clients gain access to high-barrier-to-entry investment solutions which deliver superior risk-adjusted returns. Learn more at www.fengate.com.
About PowerFin Partners
PowerFin is an independent power developer and operator with offices in Austin and San Antonio, Texas. Founded in 2007, it is one of the longest standing solar development firms in Texas. The company is highly focused on unlocking the distributed and on-peak value of solar within the context of existing power market design. Through the integration of development, construction and operating activities, PowerFin delivers cost-competitive solar – both distributed and utility-scale – under reliable long-term electricity contracts with utilities, governments, corporations and other consumers. www.powerfinpartners.com
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