Private Equity Deal of the Year: Actis’ sale of Atlantic Energias Renováveis

Private Equity Deal of the Year: Actis’ sale of Atlantic Energias Renováveis

The size and scope of Latin America’s rapidly developing renewable energy sector has only deepened in the past few years. In a related push, corporations are chasing ESG (environmental, social, governance) standards to satisfy portfolio investor’s demands. The critical mass is now attracting sizeable investment from outside the region.

Benefiting from an early mover status with a 2013 investment, UK-based private equity investor Actis Capital exited from its 100% stake in Brazil’s Atlantic Energias Renováveis S/A investment in September 2019. It sold the 642 MW wind power portfolio to China General Nuclear (CGN).

“We wanted to run a competitive process,” says Bruno Moraes, a director of energy at Actis, who notes that the sale was not geared specifically toward Chinese buyers.

He adds that the capacity for the assets it sold could grow easily to 1 gigawatt of output. LatinFinance reported, via sources, that the property was sold for roughly BRL4 billion (about $1 billion at the time). Earlier news reports indicated Actis made 6 to 7 times its initial investment on the deal.

According to Moraes, the deal’s legal structure was negotiated under UK law, although the two foreign investors in the transaction also had to abide by Brazil’s legal code.

Award accepted by: Marcelo Guerra, Investment Principal

Private Equity Deal of the Year

Supporting Financial Institutions: Actis- Itaú BBA, Goldman Sachs | CGN- BNP Paribas

Supporting Law Firms: Actis- Mattos Filho, Clifford Chance | CGN- Azevedo Sette, Eversheds Sutherland

All supporting financial institutions and law firms were transmitted to LatinFinance by the award category winners. For updates please email awards@latinfinance.com