Darby Overseas leads $30m Brazil investment(4)

Darby Overseas Investments has led a $30 million investment in GEA, a holding company of Eletrogóes, which owns a 73.5 megawatt hydro plant.

Darby: continued focus on clean energy

The private equity arm of Californian fund management firm Franklin Templeton Investments said that the deal, completed through its joint venture with Brazilian private equity firm Stratus Group, was the first for their Brazil Mezzanine Infrastructure Fund (BMIF), according to multiple reports.

In addition to the hydro plant, GEA also controls a 24 megawatt biomass-fired thermal power plant. Both plants, in Northern Brazil, are in the final stages of construction and are expected to be completed and operational in September.

Once completed the plants are intended to replace energy generators which use diesel and oil-fired sources.

David Hudson, a senior managing director for a infrastructure in Asia, said: “The company (Eletrogóes) fits perfectly with our strategy of investing in medium-sized companies with strong growth prospects, high caliber management and excellent product quality. It also reinforces our commitment to Brazil, which is a core market for Darby.”

The purchase continues Darby’s strategy of buying companies that develop clean energy schemes. In January, the firm purchased a large equity holding in a wind farm in South Korea and it has also invested in a wind and hydro-power plant developer in India.

Darby Overseas Investments is a fully-owned subsidiary of Franklin Resources, an investment management arm of Franklin Templeton Investments.