Geothermal district heating project contributes to successful investment fund
Opening of Villages Nature Paris (video screenshot)
Carlo Cariaga
28 Mar 2019
By investing in renewable energy projects across Europe, the Capenergie 2 Fund by Omnes has achieved a 15% investor net IRR, making it one of the best performing funds in the sector.
Omnes has announced a 15% investor net IRR for the EUR134 million Capenergie 2 fund, which was launched in 2010 and focused on investing in the most competitive renewable energy products in Europe. The fund is considered among the top performers in the sector.
The Capenergie fund was first launched in 2006 by Omnes, a pioneer in the energy transition sector, with the goal of providing private equity growth capital to independent power producers across Europe. In over 15 years, it has completed more than 40 deals across a unique network of independent power producers.
The unique value-add strategy of the Capenergie Funds is to target the most competitive renewable energy projects, including wind, solar, and hydro-electricity, to increase their organic or external growth capacity and boost their market share. The funds operate across Europe, whether in regulated or non-regulated markets, and in countries that require new means of production.
The success of the Capenergie 2 fund was due to the following growth-driven investments, among others:
- A stake in Neoen in 2011, which is now one of the most successful European independent power producers. The company has made an IPO last October, the largest in France for 2018.
- The creation of a portfolio of eight wind farms and solar power plants in France and Portugal between 2010 and 2013. These were then resold to the Swiss operator EOS Holding in 2016.
- The design, construction, and operation of the “Villages Nature” geothermal district heating network in Marne-la-Vallée in 2015, alongside partners Kyotherm, Cofely Réseaux and Storengy.
The Capenergie 3 fund has enjoyed similar success, with EUR244 million raised in 2017 and 65% invested, by applying a similar value-add approach to renewable energy. In partnership with European independent power producers, the fund has established nine infrastructure platforms. The Capenergie 3 fund made the following investments in 2018:
- Creation of a joint venture with Ilmataer (Finland) to develop wind power generation in the Nordics
- Creation of a joint venture with Repower (Italy) for the management of a portfolio of assets and projects under development in Italy
- Support to Unite (France), an independent power producer, for the development of a hydropower facility
The Capernegie 4 fund, with a target size of EUR500 million, is set to be launched in Q3 2019. It will continue to use the value-add strategy that made its predecessors so successful.
According to Serge Savasta, Managing Partner at Omnes, “For nearly 15 years, we have followed the same approach of developing critical-sized renewable energy production platforms in Europe. The success of Capenergie 2 confirms the relevance of our value creation strategy that combines private equity and infrastructure.”
Source: Omnes Capital
