VORTEX ENERGY II
Leveraging the success of Vortex I, Vortex Energy established its second wind energy portfolio to expand its wind presence across Europe.
VORTEX II 2016-2019 | CASE STUDY
Transaction In Numbers
Acquisition Price
EUR 550mn
Entry Net Capacity
325 MW
Technology
Wind
Partner
EDPR
Vortex II Entry
Acquisition and Divestment
In partnership with EDPR, Vortex Energy launched Vortex II in 2016 as a EUR 550 million investment for a 49% stake in an operational onshore wind portfolio encompassing 23 wind farms with a gross capacity of 664 MW located across Spain, Portugal, Belgium, and France. Some 60% of the acquisition price was financed by a 13-year credit facility provided by a syndicate of banks including BNP Paribas, Ciaxabank, Banco de Sabadell, ING and Banco Popular. Beaufort provided 5% of the equity capital as seed capital and the remaining 95% was provided by a GCC-based sovereign wealth fund.
Vortex I and Vortex II investments were consolidated into Vortex Wind, a single 998 MW pan-European platform including 56 operational windfarms across Western Europe, allowing for efficient asset management and maximum value creation. The portfolio benefitted from a 14-year FiT arrangement to offtake 100% of the 762 GWh electricity generated annually, at a pre-determined tariff.
In 2019, Vortex Wind was entirely divested to J.P. Morgan Asset Management, generating 13% IRR to shareholders with a 1.4x cash-on-cash multiple.
Vortex II – 2016-2019 | Case Study
Asset Management
- EDPR France retained operational control over the wind assets while Beaufort Investments managed the investment vehicle for Vortex II. Over an average of three years, the wind assets achieved above-average operational excellence with historical availability levels ranging between 97% and 98%. EDPR and Beaufort worked to set annual budgets for the 1 GW wind portfolio. Beaufort initiated and completed a fully-fledged structuring process to enhance their instruments. It also worked with lenders to optimize financing agreements to allow for better alignment and exit transactions by preparing a full refinancing package for the buyer, increasing value by over EUR 50 million. It also maximized shareholder distributions by ensuring an efficient cash management process.