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STRATEGY

TEAM

CASE STUDIES

PORTFOLIO

CAREERS

NEWS

CONTACT

INVESTORS

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GENERAL

First Hydro

U.K.’s largest, most flexible and efficient pumped storage portfolio with 2,100 megawatts of capacity

Please note this investment was executed during prior employment of a Reinova Co-Founder

Transaction Overview

Transaction Overview

Acquired a 25% stake in First Hydro, the UK's largest pumped hydro storage business (2,100 MW) in 2017

Transaction Overview

Acquired a 25% stake in First Hydro, the UK's largest pumped hydro storage business (2,100 MW) in 2017

Investment Thesis

Investment Thesis

Recognized that with the phase-out of coal generation and increased renewables the grid would require additional flexibility and storage assets
Opportunity to leverage deep operational expertise in hydroelectric power to enhance asset value
Recognized critical role of pumped hydro storage in meeting UK's increasing grid flexibility and net-zero objectives
Ability to significantly extend asset lifespan and optimize commercial strategy through targeted operational enhancements

Invest for Value

Invest for Value

Strategic Asset with Potential for Value Creation

Identified ability to materially extend asset lifespan by refurbishing pumped storage facilities
Recognized opportunity to optimize the commercial strategy based on extensive hydroelectric expertise
Positioned asset strategically to meet the UK's growing need for renewable storage solutions and grid stability

Sourced Bilateral Transaction

Identified need for grid flexibility
Sought to acquire control
Acquired minority stake for value with sufficient governance

Value Creation

Value Creation

Operational Improvements and Life Extension

Completed refurbishment significantly extending pumped storage facility life by over 40 years and upgrading turbines and product capability
Enhanced management practices securing long-term operational efficiency and asset sustainability

Enhanced Revenue Positioning

Strengthened asset’s market position through active management
Seconded personnel and implemented new commercial strategies

Building for Exit

Building for Exit

Optimized Capital Structure & Cash Generation

Executed a Holdco financing
Generated significant portion of total MOIC from dividends during holding period

Realizing Strategic Value

Sale to CDPQ, recognizing substantial embedded long-term value
Provided buyer with a highly strategic and long-life asset critical for future grid stability

Exit Highlights

Fully exited investment generating strong returns

Status:

Generated over 3.5x invested capital

Return:

Generated over 3.5x invested capital

Returns

Returns

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