ADIA, OTTP invest $1.2b in renewables-focused Equis

Equis Development was established as part of a restructure following the sale of Equis Energy to Global Infrastructure Partners (GIP) in a landmark 2018 deal worth $5 billion. It was said to be the largest-ever renewables acquisition at the time. Equis Energy now exists as a separate entity, which GIP has rebranded Vena Energy.

Concurrent with the Equis Energy sale, parent company Equis Group launched a fund with a target of $2 billion. This was restructured as a holding company that would raise up to $1 billion for deployment on a when-needed basis. The platform, designed to recycle gains back into new projects, was intended to appeal to LPs across the infrastructure experience spectrum.

The platform was on track to be fully capitalized by April but was delayed due to COVID-19. Equis Group has historically raised more than $2.7 billion in private equity using fund structures but confirmed last year that all investments and capital management initiatives would now be undertaken by Equis Development, a corporate entity headquartered in Singapore.

Equis Development specializes in developing, constructing, and operating primary and hybrid renewable energy and biomass generation, power grid distribution and transmission, and waste infrastructure assets. It plans to invest more than $2 billion in greenfield projects across Australia, Japan, Korea, and Taiwan during the next two years.

There are currently 40 assets in various development and construction phases in these target markets. Further build-out will be supported by an expansion of the management team, currently comprising around 60 engineering, investment, and development professionals. This is the same team responsible for the Equis Energy platform.

Recent activity includes a portfolio of four Korean waste-to-energy projects receiving KRW100 billion ($89.6 million) from local investor Hana Financial. Equis Development has a 10% stake in the portfolio’s operator, Vine Enviro, and the right to reinvest over time up to 55%. Meanwhile, Equis Asia Fund 2 has divested two Japanese biomass projects to Tokyo Gas for $1 billion.

“We believe there is a significant opportunity to support the growth of renewable energy infrastructure in Asia Pacific,” Khadem Al Remeithi, an executive director of the real estate and infrastructure department at ADIA, said in a statement. “Equis has a strong management team with extensive development and operational experience and is well-positioned to continue to build its reputation as one of the region’s leading renewable energy businesses.”

LP interest in Asian infrastructure appears to be increasing as non-fund modes of access have proliferated. These platforms aim to provide global investors with more portfolio control and access to operators. The trend has been most noticeable in categories with more involved operational requirements such as renewables, which is projected to represent 70% of global electricity generation growth through 2023, according to the International Energy Agency.

UBS served as placement agent for Equis Development. It declined to comment on the matter.

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• Topics
• Infrastructure
• Cleantech
• Industrials
• Fundraising
• North Asia
• Australasia
• Singapore
• Japan
• South Korea
• Australia
• Taiwan (China)
• Equis Funds Group
• Abu Dhabi Investment Authority (ADIA)
• renewable energy
• energy