The sale involves one of the largest wind energy portfolios in Europe and comes just four years after Vortex Energy launched in Europe, delivering attractive shareholder value
21 December 2018
(London, United Kingdom) — Vortex Energy, a European renewable energy platform managed by the private equity arm of EFG Hermes, has entered into a sale and purchase agreement to divest a 49% stake in a 998 MW operational wind power portfolio managed and co-owned by EDPR, to institutional investors advised by J.P. Morgan Asset Management.
Assets included in the sale include 56 operational wind farms with gross capacity of 998 MW spread across Spain, France, Portugal and Belgium.
Karim Moussa, Head of Private Equity and Asset Management, EFG Hermes said:
“The sale of Vortex Energy’s wind assets demonstrates our ability to acquire, manage and exit renewable energy investments on a global scale. We launched Vortex Energy exactly four years ago and have grown to become a prominent renewable energy-focused investment manager in Europe and the UK with a solar and wind portfolio of 822 MW and combined executed transactions in excess of EUR 2.4 billion. We remain highly committed to the clean energy market and are now embarking on a new chapter in Vortex’s growth story.”
Bakr Abdel-Wahab, Head of Energy, EFG Hermes Private Equity, said:
“We are pleased with the outcome of this transaction, which was complex to negotiate and execute in such a compressed timeline. We aggregated and grew this wind portfolio over two substantial investments to become one of the most sizeable wind portfolios in Europe. During our holding period, we returned an attractive cash yield and enhanced shareholders value. We shall continue with our investment and asset management approach to expand the business into new geographies and renewable energy segments”
Matthew LeBlanc, Managing Director, J.P. Morgan Asset Management, Infrastructure Investments Group, said:
“We are delighted to acquire the operational wind interests of Vortex Energy, which delivers sustainable, risk-adjusted returns to our investors, which include pension schemes representing over 25 million families. The acquisition builds upon our investment momentum in renewables, complementing our European operational wind platform Ventient Energy, and increases our renewables energy production capacity to over 3.8 GW. We are excited to partner with the EDPR alongside our other renewables businesses to continue to grow a truly pan-European renewables independent power producer.”
The closing of the transaction is subject to the completion of certain conditions precedents.
Vortex’s advisors on the transaction included BofA Merrill Lynch (sell-side M&A advisor), Shearman & Sterling (legal), Linklaters (legal), PwC (financial and tax), DNV GL (technical), Baringa (market).
About EFG Hermes
With a current footprint spanning twelve countries across four continents, EFG Hermes started in Egypt and has grown over 30 years of success to become a leading financial services corporation with access to emerging and frontier markets. Drawing on our proven track-record and a team of more than 4,400 talented employees, we provide a wide spectrum of financial services that include investment banking, asset management, securities brokerage, research and private equity across Frontier Emerging Markets. In 2015, EFG Hermes launched the NBFI Platform, EFG Hermes Finance, which will overlook activities in the non-banking finance field through EFG Hermes Leasing, Tanmeyah Microfinance, valU for instalment sale services and EFG Hermes Factoring. This falls in line with the Firm’s strategy to focus on two main pillars: product diversification and geographic expansion into frontier markets, which has seen the firm establish a physical presence in Pakistan, Kenya, Bangladesh, the United Kingdom and the United States.
EFG Hermes’ private equity arm is one of the Arab world’s leading private-equity groups with a special focus on investing in infrastructure (particularly renewable energy), healthcare, education and consumer products. With more than 25 years of experience in investing across a broad industrial footprint, the firm is a leader in infrastructure private equity.
For further information about EFG Hermes, please visit www.efghermes.com and stay connected with us:
About Vortex Energy
Vortex Energy was established in 2014 as an investment platform, sponsored by EFG Hermes, to pursue renewable energy investments in Europe. Vortex comprises of a team of 12 dedicated infrastructure and private equity specialists with wide experience in global infrastructure and renewable energy investments.
As of the end of 2018, Vortex has a portfolio of wind and solar assets of 822MW acquired through various investments amounting to approximately EUR 1.3bn, spanning the UK, Spain, France, Portugal and Belgium.
Vortex Energy continues to hold its investment in a 365MW UK solar PV portfolio (Vortex Solar). It has now a full operational asset management team based in London.
About J.P. Morgan Asset Management
J.P. Morgan Global Alternatives is the alternative investment arm of J.P. Morgan Asset Management. With more than $135 billion in assets under management and over 800 professionals (as of September 30, 2018), we offer strategies across the alternative investment spectrum including real estate, private equity and credit, infrastructure, transportation, liquid alternatives, and hedge funds. Operating from 23 offices throughout the Americas, Europe and Asia Pacific, our independent alternative investment engines combine specialist knowledge and singular focus with the global reach, vast resources and powerful infrastructure of J.P. Morgan to help meet each client’s specific objectives. For more information: www.jpmorganassetmanagement.com
Note on Forward-Looking Statements
In this press release, EFG Hermes may make forward looking statements, including, for example, statements about management’s expectations, strategic objectives, growth opportunities and business prospects. These forward-looking statements are not historical facts but instead represent only EFG Hermes’ belief regarding future events, many of which, by their nature are inherently uncertain and are beyond management’s control and include among others, financial market volatility; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current, pending and future legislation, regulations and regulatory actions. Accordingly, the readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made.