EOS Investment Management launches second tranche of the Efesto Energy fund
14/12/2015 – Private Equity Wire
EOS Investment Management (EOS IM) has launched the second tranche of the Efesto Energy fund, which is incorporated in Luxembourg as a Specialised Investment Fund (SIF) and pools together photovoltaic (PV) power plants into a single vehicle giving international investors access to Italy’s booming renewable energy and solar market.
Following a well-received launch of the initial tranche in 2014, Efesto Energy has successfully completed its first round of acquisitions consisting of PV plants for a total value of circa EUR60 million and total capacity of 25 MW, with the next acquisition to be finalised by the year end. The current portfolio of solar assets stretches across 8 Italian regions with PV plants benefiting from agreed Feed In Tariffs, well-established grid connections, a proven average operational and financial track record of 3 years and low on-going maintenance requirements and capex. The fund’s objective is to achieve a net IRR above 10 per cent.
Global investments in renewable energy increased by 17 per cent to USD270.2 billion in 2014. Solar saw USD149.6 billion committed, up 25 per cent on 2013. Looking at Italy in particular, solar PV generated a record 23.3 GWh of power, or 7.5 per cent of the country’s electricity needs. This level of PV penetration is the world’s highest, and has increased from 6.6 per cent in 2013. Solar power in Italy has long been an attractive proposition for foreign investors attracted by the generous subsidies soaring to EUR 6.7 billion in 2013. Such a solar-friendly investment environment pulled in more than EUR 50 billion in solar investment over the past five years, bringing some 17 GW of additional PV capacity over that period.
With the retirement of thermal generation capacity, renewables and especially solar PV are forecasted to become more important in the energy mix, particularly in light of the agreement to cut fossil fuel consumption in half by 2020.
Ciro Mongillo, CEO of EOS IM, says: “Over the past few years, we have been approached by many international investors looking to target renewable energy but being unable to access it. Based on 25 years of experience, it’s easy to see why experienced investors, with an eye on the future, have ramped up their global solar investments and, by all indications, will continue to do so. Furthermore, investors are seeing the attractiveness of solar energy as an asset class since it meets effective ESG criteria.”
In addition to renewable energy investments, EOS IM actively looks as well to develop its offering in other areas of the private equity sector, with particular focus on high potential small and medium sized companies that are predominantly active in consumer and industrial goods, services and healthcare-related industries.