HOME

STRATEGY

TEAM

CASE STUDIES

PORTFOLIO

CAREERS

NEWS

CONTACT

INVESTORS

HOME

STRATEGY

TEAM

CASE STUDIES

PORTFOLIO

CAREERS

NEWS

CONTACT

INVESTORS

thumbnail

GENERAL

GENERAL

GENERAL

US Wind Strategy and Western Wind Take-Private

Over many years executed a multi-asset, strategically focused buy and organic build of US wind assets

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

Transaction Overview

Transaction Overview

Over 2010-2012 developed strategy to enter US wind market focusing on development and high-value power market
Total Portfolio of ~516 MW built via 4 transactions

Transaction Overview

Over 2010-2012 developed strategy to enter US wind market focusing on development and high-value power market
Total Portfolio of ~516 MW built via 4 transactions

Investment Thesis

Investment Thesis

US wind market at the time was characterized by companies attributing very significant value to unbuilt development pipelines in US Midwest/ Texas due to size
At same time there was looming regulatory uncertainty related to tax credits – developed thesis to focus on highest value US power markets in US west and US northeast
Identified several developers, needing capital for construction, distressed sellers and undervalued public company to build cohesive portfolio

Invest for Value

Invest for Value

Sourced multiple development projects

Identified Tehachapi, California as high value market
Developed plan to target sites owned by undercapitalized developers
Targeted sites suitable for repowering

Completed several development site acquisitions

In 2012 acquired Tehachapi assets from private owners
In 2011 acquired 89% of 99 MW Granite Reliable in New Hampshire from a distressed wind company with view to constructing a project

Sourced and Executed a Take-Private

In 2013 identified Western Wind, a small Canadian listed company that had 165 MW mainly in California and was trading well below fundamental value for several reasons
Tried to build relationship with management team to execute take-private
Ultimately acquired a ~25% toehold held by institutional investor and launched take-private offer

Value Creation

Value Creation

Executed project development in California

Completed local permitting matters
Transmission interconnection improvements
Renegotiated and improved PPA
Secured turbine supply agreements and executed construction contracts
Repowering of older sites in CA, AZ
Key site was the Coram project repowered from 22 MW to 102 MW

Executed project development in New Hampshire

Completed project development activities
Secured revenue stream (mix of PPA, hedges)
Working with Vestas, executed a complex turbine supply and swap agreement to qualify the project for tax credits under ‘safe harbour’ regime

Refinancing and capital structure

Executed several project financings
Optimized capital structure via tax credit sales

Building for Exit

Building for Exit

Sale of stabilized consolidated portfolio

Offered consolidated portfolio of 391 MW for sale
Combination of several contiguous assets and location in high value power markets attracted strategics
Sale of assets to NextEra

Other Case Studies

thumbnail

thumbnail

thumbnail

thumbnail

Building Renewable US Hydro Business

Over 2007-14 acquired multiple hydroelectric portfolios, primarily in the United States

Enwave Canada

Enwave was a district energy business in and owned by City of Toronto - $330mm investment

thumbnail

thumbnail

thumbnail

thumbnail

Wind Energy Transmission Texas

415-mile regulated, high-voltage transmission system in West Texas connected to 2,873 MW of wind and solar farms