China's Zhongzhi invests $80m in renewable energy producer
ZZ Capital, an alternative assets manager and private equity firm backed by China’s Zhongzhi Enterprise Group, has committed EUR70 million ($80 million) to Italy-based renewable energy producer Building Energy.
The investment was led by ZZ Capital’s Hong Kong-listed subsidiary, ZZ Capital International (ZZCI). Existing investors Synergo and Three Hills Capital Partners – PE firms based in Italy and Luxembourg respectively – contributed an undisclosed amount of additional funding, according to a release.
Building Energy will use the new capital for expansion, particularly in China and other Asian markets, where ZZ and Zhongzhi are expected to provide important connections. The company already operates in 20 countries worldwide, producing wind, solar, hydro and biomass power.
As part of the deal Building Energy will also be redomiciled from Italy to the UK. The move is expected to help the company benefit from the depth of London’s capital markets and the renewable energy expertise availale in the UK.
“Building Energy fits well within our investment strategy, which is focused on investing in entrepreneur and management-led companies operating in five key sectors and helping them to develop their business in China,” said Sergio D’Angelo, the European head of ZZCI. “Building Energy has a proven track record in the renewable energy sector, which is experiencing growing demand on a global scale.”
ZZCI was formed last year following ZZ Capital’s acquisition of Hong Kong-listed Asia Capital Holdings. The firm has offices in Hong Kong, London, New York and Tel Aviv, and focuses on helping owners and managers of companies expand their business in China. It backs companies in the environmental, healthcare, industrial, financial services, education, media and technology sectors.
ZZ Capital, founded in 2011, has invested about $2 billion since its launch, primarily in public and privately owned Chinese companies. In 2014 it joined steel equipment manufacturer Jiangyin Zhongnan Heavy Industries to launch Zhongnan Cultural Media Fund Management, a media-focused buyout fund with a target of RMB3 billion ($442 million).
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