HgCapital had previously sold three wind farms in the RidgeWind portfolio to Germany’s Munich Re, with Blue Energy now acquiring the remaining pipeline and development team.
Tom Murley, head of HgCapital’s renewable energy team, said, “For the second time in less than a year, the RidgeWind sale confirms that our focused investment strategy is delivering our investors returns at the high end of our target range.
“In RidgeWind we saw the core elements of value creation: a strong team with a focus on larger sites with the best wind resources and the ability to create and manage an industrial scale UK wind business.”
Doug Coleman, special projects director at privately-owned Blue Energy, said that RidgeWind will be incorporated into the new owner’s operation, with the team also moving across.
Blue Energy is now looking for further opportunities acquisition opportunities, although the company does not have hard targets in terms of capacity.
Coleman said, “We have investors with appetite to grow a solid portfolio and the constraints are mainly the potential transaction flow we have. There are some interesting transactions available or that we believe will become available, so we don’t see any reason why there will be a throttle on deals.”
HgCapital Renewable Power Partners, HgCapital’s first dedicated renewable energy investment fund, acquired 100 per cent of RidgeWind in 2007. During HgCapital’s ownership RidgeWind grew from a development portfolio that included one permitted site of 16MW, to permitting a further six sites totalling 177MW.
In 2004 HgCapital was the first major UK private equity firm to establish a dedicated renewable energy investment team, closing its first fund in 2006 on €303m.
In 2011 HgCapital closed its second renewable energy fund on €542m, making it the largest dedicated renewable energy fund in Europe.
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