(Real Infrastructure Capital) July 17, 2012 – Real Infrastructure Capital Partners LLC (REAL) is pleased to announce the first closing of its Latin Renewables Infrastructure Fund, LP with approximately US $50M of commitments. The Fund will invest in utility-scale, renewable resource power generation – principally wind and hydro power – in Latin America, with an immediate focus on Central America. Market conditions for renewable energy in Latin America are highly favorable with assets being price competitive with fossil-fuel based generation (e.g., oil, gas, coal) with little to no subsidies required. The target size of the fund is $150 – $200M.
The Fund is the first offering by REAL. REAL is led by four partners who have delivered highly successful results over many years of investing in the Latin American power sector with firms including; Conduit Capital Partners and Globeleq, as well as elsewhere in the emerging markets with Emerging Markets Partnership and Wolfensohn and Company. The Fund will take equity stakes in generation assets of various stages of development to create a portfolio of investments which are expected to provide superior risk-adjusted returns. Typically, renewable power investments in the fund’s target markets have very low operational risk, long term, fixed-price and dollar-indexed power sales contracts, and solid credit structures. In addition to the important global and local environmental benefits resulting from the Fund’s investments, the Fund’s projects will also provide important social and economic benefits to local communities.
The Fund was able to achieve a strong first closing with active support from its anchor investors: the German development finance institution Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG); the Netherlands Development Finance Company (FMO); the International Finance Corporation (IFC); and the Swiss Investment Fund for Emerging Markets (SIFEM), the Swiss development finance institution managed by Obviam. The participation of these influential institutions as investors will further enhance the fund’s stature within its target markets.
About our LPs:
DEG, a subsidiary of KfW, is one of the largest European development finance institutions. For 50 years, DEG has been financing and structuring the investments of private companies in developing and emerging market countries. DEG invests in profitable projects that contribute to sustainable development in all sectors of the economy, from agribusiness to infrastructure and manufacturing to services. The financial sector is a further focus in order to facilitate reliable access to investment capital locally. DEG’s aim is to establish and expand private enterprise structures in developing and emerging countries, and thus create the basis for sustainable economic growth and a lasting improvement in the living conditions of the local population.
FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 5.9 billion, FMO is one of the largest European bilateral private sector development banks.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion.
SIFEM, the Swiss Investment Fund for Emerging Markets, is the Swiss Development Finance Institution. It provides long-term finance to private equity funds and financial institutions in emerging markets. SIFEM’s primary focus is on institutions investing in the small and medium enterprise (SME) sector. On a selective basis, SIFEM also invests in microfinance. SIFEM’s investment philosophy is guided by the belief that investing in commercially viable emerging market SMEs can provide investors risk adjusted returns, as well as generate sustainable, long-term development effects in local communities. SIFEM is fully owned by the Swiss Confederation and managed by Obviam, a privately owned management advisory group.
If you would like more information about the Fund or to schedule an interview, please contact Kristina Matthews at: +1 (609) 865-6680 or [email protected]