Crescent Capital, an Istanbul-based fund manager focused on energy and infrastructure investments, has closed its first investment. The investment in a 60.4 MW photovoltaic power plant in Bulgaria was made through Crescent’s Clean Energy Transition Fund, a Turkish energy-focused private equity fund backed by international financial institutions including the EBRD and EIB.
Crescent Capital, the Istanbul-based fund manager focused on energy and infrastructure investments, has successfully closed on its first investment, a 60.4 MW photovoltaic (PV) power plant in Bulgaria. The investment was made through Crescent’s Clean Energy Transition Fund (CETF), the first energy-focused private equity fund in Turkey, backed by leading international financial institutions including the EBRD and EIB.
The PV plant which is located in Karadhzalovo, south eastern Bulgaria, is currently one of the largest in Europe. The project was developed and built by SunEdison, the leading American solar development company. The plant will be operated by a consortium of NOMAC (a subsidiary of ACWA Power) and SunEdison under long term agreement.
Crescent Capital has jointly structured the investment with First Reserve and ACWA Power, two leading investors in power generation worldwide. The plant will be co-owned by CETF, ACWA Power, and an affiliate of First Reserve Energy Infrastructure Fund. The project has received long-term non-recourse financing from International Finance Corporation (IFC), the private sector arm of the World Bank, Overseas Private Investment Corporation (OPIC) of the USA, and UniCredit.
Aygen Yayikoglu, Founder and Managing Partner of Crescent Capital said, “We are proud to complete our first investment shortly after the establishment of our pioneer Fund, and partner with first class names in the power industry. Crescent has a strong pipeline of power projects in its portfolio and will continue playing a catalyst role for energy investments in Turkey and neighbouring countries”. Richard Roberts, an Investment Director at the firm added: “This project demonstrates the ability of Crescent’s experienced team to source and execute high-profile transactions in a region with an increasing demand for power generation and structured finance”.
Pancho Perez, General Manager of SunEdison for Europe, Middle East, North Africa, Latin America and North Asia commented: “The experience, deep knowledge of the country and region and superb professionalism of Crescent Capital’s team has made this transaction very agile and efficient. We look forward to expanding our relationship with future projects, as this is a perfect example of how the collaboration of two world class partners allows win-win deals”
Paddy Padmanathan, the President & CEO of ACWA Power said: “The renewable energy fund of Crescent Capital is a value adding partner with whom we look forward to building a portfolio on the solid foundation we have established through this Bulgarian solar PV project”.
CETF was established in November 2011, and is currently investing across Turkey and South Eastern Europe. The Fund invests in all types of clean power generation projects, including hydro, wind, solar, geothermal, and biomass. The final closing of CETF is planned by the end of 2012.