Alternative investor AXA IM Alts has entered into an agreement to acquire a 25% stake in Iberian renewables platform Finerge from Igneo Infrastructure Partners.
The transaction, which has been made on behalf of AXA IM Alts’ clients, is subject to customary approvals and expected to close by the end of 2023.
Finerge’s operating capacity is currently close to 2GW, following 14 bolt-on transactions in Iberia, and this investment will support the platform’s growth as it looks to make further investments in developing, constructing and operating wind farms and solar PV plants in Portugal and Spain.
This acquisition reflects AXA IM Alts’ conviction around the critical role that infrastructure will play in the energy transition needed to create a net zero economy and mitigate against future climate risk, the investor said.
It also aligns with AXA IM Alts’ strategy of investing in assets that enable the decarbonisation, electrification and digitalisation of society to this end, it added.
This transaction furthers AXA IM Alts’ exposure to the renewable energy sector following its 2022 investment into the Hornsea 2 offshore wind farm in the UK, bringing the total operating capacity of its projects to around 3.3GW and its total infrastructure equity assets under management to more than €4bn.
JDeputy head of infrastructure at AXA IM Alts Gailleton said: “Our conviction is that climate change is the great issue of this century and the central risk of tomorrow.
“We believe that integrated renewable energy independent power producers like Finerge, which have the capacity to scale as 21st Century utilities, will be essential to delivering the energy transition as fast as it is needed.
“We look forward to partnering with Igneo and the Finerge management team to accelerate the build-out of the Finerge fleet across solar, wind and other energy transition technologies.”
Uría Menéndez has advised Axa Investment Managers with an M&A-Private Equity team led by partners Manuel Echenique, Alex Bircham and Miguel Stokes, supported by senior associate Cristina Díaz Bauluz and junior associate Eduardo Bayona.