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Transactions - SEPTEMBER 20, 2019

Partners Group to acquire 50% stake in Latin American power generation platform

by Released

Partners Group has agreed to acquire a 50 percent stake in EnfraGen, a developer, owner and operator of specialized power generation assets in Latin America, on behalf of its clients.

“Latin America has experienced a rapid expansion of renewable energy sources, creating an increased need for grid stability,” said Edward Diffendal, managing director, private infrastructure Americas, with Partners Group. “EnfraGen operates in a particularly attractive segment of this market, which benefits from structural renewable tailwinds and receives stable cash flows under long-term established capacity contracts. Back-up power generators such as EnfraGen play a critical role in reducing load imbalance in Latin America, and EnfraGen also provides reliable renewable energy to local communities.”

Glenfarne Group, the U.S.-based industrial owner and operator that founded EnfraGen, will retain the remaining 50 percent of the business. Part of Partners Group’s capital injection will fund EnfraGen’s expansion into Colombia with the acquisition of Termoflores, the country’s second-largest back-up power generation asset and one of its largest combined cycle gas turbine assets.

Formed in 2015, EnfraGen specializes in providing back-up power for grid stability and baseload renewable power generation in investment-grade countries in Latin America through its existing businesses, Prime Energía and Fontus. Prime Energía focuses on grid stability with a portfolio comprising eight thermal back-up power generation assets in Chile and the newly acquired Termoflores asset in Colombia. Fontus focuses on baseload renewable assets with an expanding portfolio of solar assets and three hydropower assets. Including the Termoflores acquisition, EnfraGen will have 1.4 gigawatts in total power generation capacity across its platform, plus an executable growth pipeline.

Following the investment, Partners Group and Glenfarne will work closely with EnfraGen's management team, led by Brendan Duval, EnfraGen CEO and founding partner of Glenfarne, to drive forward a number of strategic value creation and growth initiatives. Key areas of focus will include the ongoing development of the Fontus assets in Chile, Colombia and Panama; executing on the construction of the existing greenfield portfolio; and further expanding the platform via strategic acquisitions in target markets.

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