Olympus part-exits Singapore's Constant Energy via trade sale

Virya has acquired a majority stake in the business through a combination of primary equity and secondary shares. The size of the deal was not disclosed. Olympus, which invested in Constant Energy in early 2020, will retain a significant minority interest.

The private equity firm, which has been active in Asia for 25 years, closed its most recent flagship pan-regional fund on USD 215m in 2017, two years after launch. In 2021, the firm completed a GP-led restructuring of the predecessor fund raised in 2007.

Constant Energy was backed through a sustainability-focused offshoot strategy launched in 2009. It is a portfolio company of Asia Environmental Partners II, which had raised USD 276m against a USD 300m target as of 2015, according to AVCJ Research.

Constant Energy was founded in 2017, and the Olympus investment was predicated on helping scale the company scale across Southeast Asia and pursuing opportunities in the commercial and industrial renewable and storage market. At the time, Constant had 150 megawatts of development-stage subsidy-free solar plants, predominantly in Thailand, that served over 25 large industrial clients.

The company now has 121 MW of installed and contracted rooftop solar energy capacity in Thailand, Malaysia, and Vietnam. It sells power through long-term corporate power purchasing agreements (PPAs). In the past three months alone, PPAs totalling 2,939 kilowatts have been signed with Thailand-based Minth Asia Pacific and Molten. Other clients include Aisin Group, Western Digital, Panasonic, and Nestle.

In 2009, the Constant Energy management team co-founded Sonnedix, which built up a portfolio of 350 MW of operating assets, becoming one of the largest independent solar power producers globally. It was sold to J.P. Morgan Asset Management in 2017 and now has over 9 gigawatts of capacity.

Virya said in a statement that the acquisition represents a significant boost to its solar and Asian ambitions, complementing a strong existing wind power portfolio in Europe.

"While we started Constant Energy five years ago, we are only still at the beginning of the renewable power industry servicing large-scale corporate clients in Asia. ESG [environment, social, and governance] imperatives demand that large corporates decarbonize faster," said Franck Constant, CEO of Constant Energy.

"With solar power emerging as the most affordable energy source in our sun-drenched regions, we are humbled by Virya's trust and investment. This accelerates our growth, enabling us to make it happen for our clients and reduce carbon footprint."

Olympus and Constant Energy were advised by Standard Chartered and Hunton Andrews Kurth, while Finegreen and Linklaters worked with Virya.

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• Topics
• Southeast Asia
• Cleantech
• Infrastructure
• Trade sale
• Singapore
• Thailand
• renewable energy
• Olympus Capital Holdings Asia