GIP to buy Equis renewable energy portfolio for $5b
Global Infrastructure Partners (GIP) has agreed to acquire 100% of Equis Energy, a project platform of 180 assets under private equity investor Equis Funds Group, for $5 billion. It is said to be the world’s largest renewable energy generation acquisition to date.
According to a statement, GIP and unspecified co-investors will pay in cash and assume liabilities of about $1.3 billion. The transaction remains subject to approvals and is expected to close in the first quarter of 2018.
“GIP has a strong track record of managing and growing utility‐scale infrastructure businesses, and the combination of experience and knowledge across GIP and the existing management team will allow Equis Energy to continue expanding competitively across its target markets," said David Russell, CEO of Equis and chairman of Equis Energy.
Established in 2012, Equis Energy claims to be the largest renewable energy independent power producer in Asia Pacific with 11,135 megawatts of projects in various development phases across Australia, Japan, India, Indonesia, the Philippines, and Thailand. The platform employs more than 300 staff, including 100 engineers, and reports a 100% success rate for bringing “shovel-ready” projects to the construction stage. Every project on the platform has secured a long-term offtake agreement.
Notable assets include an Australian solar portfolio acquired earlier this year for A$400 million ($309 million) comprising a 100 MW plant and rights to a further 1,000 MW of potentially developable capacity. In August, the platform received approval to pursue a A$1.5 billion project for a separate 1,000 MW solar operation in Australia.
In addition to Equis Energy, Singapore-based Equis manages a number of programs focused exclusively on Asia energy and infrastructure. Its second private equity fund closed in 2015 at $1 billion, including an additional $300 million for a follow-on vehicle to Fund I.
Alongside Fund II, the GP also raised $400 million for two separate platform investments, Nippon Renewable Energy, a Japan solar business, and Energon, an India-based wind, solar and hydro developer. Both platforms were eventually integrated into Equis Energy.
US-based GIP is considered one of the biggest independent infrastructure fund manager globally. Its third and most recent equity fund closed at $15.8 billion earlier this year, exceeding a hard cap of $15 billion. The firm is expected to leverage the Equis Energy acquisition to further develop its existing renewable energy positions in Australia, Japan, India and Southeast Asia.
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