EFG Hermes seeks out creative opportunities to enter into sustainable investments that generate value and deliver returns. The private equity division has invested in a series of investments in the new and renewable energy industry through Vortex its platform for investments in renewable energy. Vortex has already outperformed investment targets in terms of electricity generation and financial performance. The team continues to work to optimize production and enhance the portfolio’s profitability.
With a number of opportunities in the pipeline, EFG Hermes Private Equity continues to compete for new opportunities in the European renewables sector and leverage its track record in renewables to create a permanent capital vehicle in Egypt that will act as a holding company for future projects.
In a landmark transaction announced in October 2014, EFG Hermes’s Private Equity Division finalized a USD 208 million acquisition of a 49% stake in EDPR France, a 334 MW French wind farm business. It was EFG Hermes’ first European investment and the first transaction under its Private Equity Division’s new direct investment strategy.
The acquisition was a key development in the firm’s strategy of broadening our traditional role as a catalyst for institutional capital into MENA markets by helping our partners and investors tap compelling global opportunities. The deal significantly increased the firm’s Total Assets Under Management.
The transaction underscores EFG Hermes’ ability to originate, raise equity and debt and execute deals on an international scale in a highly competitive industry. It was also the firm’s second investment in the generation of green energy in a period of less than 12 months, coming after an earlier commitment via the InfraMed fund to establish Tafilah, the Arab world’s first utility-scale wind farm in Jordan.
A year and a half after the acquisition of EDPR France, in April of 2016, Vortex completed its second deal with a subsidiary of EDPR to acquire a 49% stake in an operational 664 MW portfolio of European wind assets.
The transaction is valued at EUR 550 million and includes a portfolio of 23 wind farms in four European Union jurisdictions, including Spain (348 MW), Portugal (191 MW), Belgium (71 MW) and France (54 MW). The second acquisition will allow EDPR to realize the value of its projects’ future cash-flow stream and reinvest in the development of quality and value-accretive projects.