There are two major purposes of this post. The primary goal is to discuss a private equity business involved in making investments in renewable energy sector. Plus the next aim of this article is to discuss the expenditure of other private equity houses on renewable energy industry. We are going to discuss this particular matter in accordance with Daniel Schafer’s article’ Winds of Change’. The company selected to meet the purpose of this report is HgCapital. HgCapital is a private equity firm who’s interested in purchasing out of small, medium along with large size companies all over Europe.
The firm makes investment in all types of industries though it has a specialized fund for unlimited energy. It invests in 5 sectors: Industrials, Health care, TMT, Renewable energy and Services. The organization was created in 1985 by the title of Mercury Private Equity. It’s headquartered in London, United Kingdom. HgCapital has entire assets of about $5.2 Billion. It has eighty Employees in its offices in Germany and United Kingdom.
HgCapital was the very first UK Private Equity fund that needed in investing in unlimited energy sector. Today HgCapital is thought to be the largest renewable fund player of Europe in terminology of the amount of capital it raised. It determined its very first renewable energy funding group in 2004 and made the first investment of its in 2006 after an extensive research of the sector. The Team initially ordered electricity inexhaustible task in Western Europe through products including solar, onshore wind, then hydro. For that purpose the company uses’ fund purchase approach for infrastructures’. The company focuses on small hydro as well as wind projects which are independent of government support. In Scandinavia, the business has become the main owner and player of onshore wind farms.
The unlimited energy industry is the rapid and fastest growing sector in Europe. It’s a prospective investment business opportunity for the investors. It takes a lot of capital investment. Economies of advancement as well as scale in technologies have risen the price competitiveness of the sector. As a response to these market drivers the company has increased its focus on the usage of effective and efficient technologies along with the absolute best resource sites. This results in more affordable to consumers. To establish strategic value and to lower the intrinsic cost the company has chose to invest in industrial scale.
The content by Daniel Schafer’s’ Winds of Change’ highlighted on the increasing interest of private equity funds investment in renewable energy industry. According to the author, Daniel, Blackstone and KKR as HgCapital have discovered a new investment opportunity. As said before earlier renewable energy may be the fastest growing sector in Europe. Hence it gives you attractive and potential purchase opportunities for most of the private equity funds. There was in general 70 unlimited energy investments by private equity funds in between 2004 and 2006. Even so the number increased to 170 Investment during 2008.
There’s been a plenty of activity during this year. KKR, Continue reading (have a peek at this website) which is a United States based private equity fund, made the 1st investment of its in the renewable sector. The equal day Axa Private Equity becomes the fourth largest wind farm operator in France. After a month, another UK based private equity firm by the identity of Bridgepoint, invested a sum in wind farms of Spain. In August the same year, Blackstone, rival of KKR invested €2.5 billion for constructing Germany two offshore wind farms.