Mirova, an affiliate of Natixis Investment Manager and asset management company offering investment solutions, acquired SunFunder, a private debt management company that finances renewable energy projects in Africa and Asia. Mirova is expanding its investment platform in international markets through the acquisition.
Upon completion of the transaction, Mirova will own 100% of SunFunder, whose teams and expertise are expected to strengthen its local investment and execution capabilities for its private asset strategies.
The company has launched a series of financial investment vehicles and closed over $165 million in investments across 58 companies deploying clean energy, mainly in Africa and Asia, such as off-grid solar home systems in Malawi, village mini-grid projects in Kenya, and commercial and industrial rooftop installations in Nigeria and Thailand.
Mirova and SunFunder aim to launch a solar energy debt financing fund with an investment capacity of $500 million through about 70 projects spread over Africa, Asia, and Latin America. The first closing could take place by the end of the year.
Mirova and its subsidiaries manage €27 billion (~$28.3 billion) of assets as of March 31, 2022, including €2.2 billion (~$2.3 billion) in energy transition infrastructure and €500 million (~$525.8 million) in natural capital.
“This acquisition is an important step for our affiliate Mirova, which falls in with our 2024 strategic plan, and contributes to strengthening Natixis Investment Managers’ private and alternative asset offering. Our clients around the world looking for diversification and sustainable sources of return will now have easier access to impact investments in emerging markets,” said Tim Ryan, CEO of Natixis Investment Managers.
Last week, Repsol Renovables, Spanish energy, and the petrochemical company, approved the sale of 25% of its stake in the renewables business to the consortium formed by the French insurance company Credit Agricole Assurances and Switzerland -based Energy Infrastructure Partner (EIP) for $949 million. This transaction values Repsol’s renewable business at $4.6 billion, including debt and minority holdings.
According to Mercom’s Q1 2022 Solar Funding and M&A Report, 29 solar M&A transactions were recorded in Q1 2022 compared to 43 in Q4 2021. In a YoY comparison, there were 20 solar M&A transactions in Q1 2021.