Darby Brazil fund invests in wind, oil and gas deals

Darby’s $236 million Brazil Mezzanine Infrastructure Fund has invested a combined $60m in wind farm developer Bioenergy Geradora de Energia and an oil and gas engineering firm Produman Engenharia.

If the answer to the world’s energy crisis is a hybrid consisting of both traditional and alternative sources of power, Darby Private Equity, the private equity arm of investment management firm Franklin Templeton Investments, is onto something.

Darby’s Brazil Mezzanine Infrastructure Fund (BMIF) – closed in 2008 with $236 million of committed capital dedicated to infrastructure – made two allocations of equal size into energy assets in Brazil for a combined $60 million.

The fund invested $30 million into Bioenergy Geradora de Energia, a wind farm developer, and $30 million into Produman Engenharia, a leading engineering firm in Brazil’s oil and gas segment, including refinery work. The latter allocation is expected to finance a backlog of contracts at Produman.

“We are seeing intense activity in Brazilian infrastructure,” commented David Hudson, Darby’s senior managing director, in a press release. “Renewable energy and oil and gas are very attractive areas in Brazil and fit perfectly with BMIF’s portfolio and strategy.”

BMIF invests both in greenfield and brownfield Brazilian infrastructure projects. Other portfolio exposures include GEA’s hydro-and thermal-power plant located in northern Brazil, as well as Port of Santos’ only independent grain terminal, T-Grao.

*To find out more about Brazilian infrastructure, click here to read Infrastructure Investor's Brazil Intelligence Report.