Global private investment firm Ardian has successfully acquired a 100% stake in a Peruvian hydropower company, marking a significant expansion of its clean energy portfolio in Latin America and its first investment in hydropower. The acquisition was made through Ardian's Clean Energy Evergreen Fund (ACEEF) and involves the purchase from funds managed by BTG Pactual, Patria Investments, and GMR Holding B.V.
The acquired company holds ownership of a fully operational portfolio consisting of six run-of-river hydroelectric power plants, boasting a combined capacity of 73.4MW. These facilities benefit from energy purchase and sale contracts awarded by the Peruvian Government, denominated in US dollars and linked to inflation, with an average remaining lifespan of approximately 10 years.
Ardian views this strategic move as enhancing ACEEF's portfolio through increased geographical and technological diversification. The acquisition is expected to bolster the fund's contracted revenue profile while reinforcing its presence in the renewable energy sector within Latin America.
Benjamin Kennedy, Managing Director Renewables Infrastructure at Ardian, said: "This transaction marks our first hydro investment for the fund. This hydro portfolio diversifies our technological mix by adding a strategic and complementary technology. We are also incorporating a highly capable management team on the ground that will strengthen Ardian’s industrial asset management expertise and support our long-term capital deployment strategy."
Emilio Andrade, Director Infrastructure at Ardian, emphasized the company's commitment to renewable energy investments in Latin America: "This is our fourth direct renewable energy investment in Latin America, continuing our opportunistic approach in the region and complementing our overall renewables strategy. Considering our track record in Peru and the quality of the acquired portfolio, we are confident that we will continue to deliver strong risk-adjusted returns to our investors."
ACEEF, Ardian's first open-ended clean energy fund launched in early 2022, has reached €1 billion in funds raised as of the closing in July 2023. The fund aligns with environmental objectives outlined in Article 9 of the EU Sustainable Finance Disclosure Regulation (SFDR) and invests globally with a focus on Europe.
Ardian has been actively involved in the energy transition since 2007. Across all its Infrastructure Funds, the company manages over 8 GW of thermal and renewable energy capacity in Europe and the Americas, with a total of over $28 billion under management.
