AMP Capital, CDPQ back Invenergy

The clean energy developer agreed to a natural gas development partnership with AMP Capital and received an increased investment in its renewables business from CDPQ.

US power company Invenergy received investments from AMP Capital and Caisse de dépôt et placement du Québec as the two investors seek greater exposure to cleaner energy assets in North America and around the world.

The two deals are unrelated, but have Chicago-based Invenergy launching a partnership with AMP Capital to develop natural gas plants, seeded with an operating portfolio, while selling a stake in Invenergy Renewables that gives CDPQ over 50 percent of economic stake. Financial details for both deals were not disclosed.

Invenergy, which manages a combined 20GW of clean power assets around the world, with the majority located in North American markets, said in a statement the investments will help pay down debt and improve the company’s financial resources.

The deal with AMP Capital, an Australia-based fund manager, sets up a 50-50 partnership vehicle called Invenergy AMPCI Thermal Power Holdings. AMP’s investment gives it an equal stake in seven operating plants in the US and Canada generating a combined 2.7GW. The Australian fund manager will also partner on projects in various stages of development throughout North America, except for Invenergy’s Energía del Pacifico and Clear River Energy Center projects, which are not included in the partnership.

Dylan Foo, head of Americas infrastructure equity at AMP Capital, told Infrastructure Investor the firm was seeking a value-added, mid-market investment opportunity in the North American power sector and that Invenergy was a “natural partnership” through which to commit capital. He said the firm invested from its equity platform but would not disclose if that was made through a fund. AMP Capital closed its Global Infrastructure Fund in January 2017 on $2.4 billion.

Foo added that he could see the firm “putting $1 billion in the global power sector” in the next few years.

In a separate deal, CDPQ, a $238.3 billion Canadian pension manager, increased its stake in Invenergy Renewables to 52.4 percent after acquiring a 24.7 stake in the company in 2014. Invenergy said it would continue to manage the company.