09:48 Mon 01 Feb 2010
Hg Capital bets big on Europe's renewable energy market
Private equity specialists HG Capital Partners has ramped up its interest in the renewable sector with a 300 (£261 million) investment in three European wind and solar power projects.
HG Capital Renewable Power Partners, the 1.3 billion investment vehicle looking to benefit from the rise in demand for green technology, has bought a 50% stake in Scout Moor, one of the biggest onshore wind farms in the UK.
Manchester-based Scout Moore is the largest wind farm in England and its sale by developer Peel Energy could be the first of many such deals with Hg Capital.
Speaking inside today's FT, Tom Murley, head of Hg Capital's renewable energy team, said the UK was one of the most attractive wind power markets on the back of political backing for green technologies and frequent gusty winds.
He said: 'The UK provides a different risk-return profile, as you have to accept some market risk on a deal, but fundamentally it is a very good regime and a very good wind resource.'
Hg Capital Partners, which includes private equity investment trust HgCapital Trust (Ordinary Share) in its stable, has also invested in two Plenium Partners solar power projects located in Castilla La Mancha and Murcia in Spain.
As the HG Capital's renewable fund is almost fully invested, it is thought likely that the private equity firm will be raising more money in the near future.
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