Fiera Infrastructure, an infrastructure investment firm, has acquired an indirect equity interest in a renewable energy portfolio owned by D.E. Shaw Renewable Investments, an affiliate of D.E. Shaw Group, and other investors. No financial terms were released.
The portfolio consists of eight U.S.-based solar and wind power generation projects, as well as three other projects expected to be added in 2017. The total portfolio reflects a gross generation capacity of 921 megawatts and includes assets located across eight states. The projects are currently operating or anticipated to be operating prior to being added to the portfolio. D.E. Shaw Renewable Investments will continue to own an interest in each project.
“All 11 projects have long-term power purchase agreements with investment-grade off-takers and long-term financing in place, providing stable returns to our investors,” says Alina Osorio, infrastructure president for Fiera.
Fiera acquired the portfolio through its Fiera Infrastructure Fund. The fund invests directly in transportation, energy and social infrastructure projects or indirectly through other investment vehicles managed by Fiera Capital, its affiliates or other asset managers, which specialize in development, implementation and administration of infrastructure projects, according to the firm’s website.
Fiera Infrastructure Fund had been raising equity in anticipation of two new projects to be funded during the first quarter 2017, which included Thames Water, a water and waste service company in the United Kingdom, and the purchase of a public-private partnership in Vancouver, which was scheduled to close sometime in April.
Fiera believes the attractiveness of infrastructure investments versus traditional income vehicles should continue as investors focus on the stability of cash flows, the relatively high internal rates of return in the asset class and the lower volatility versus traditional fixed income.