The divestment is being made from EQT’s first, €1.17 billion infrastructure fund, which acquired Adven in 2012. Since then, EQT has invested about €120 million growing the business, including funding its expansion to a new country – Sweden – and a new energy sector – geothermal. Adven now provides low-carbon energy and district heating solutions in Finland, Estonia and Sweden, including geothermal solutions in the latter, across 220 sites generating 1,500 megawatts.
Paivi Arminen, a director at EQT, told Infrastructure Investor most of the €120 million “was spent replacing fossil fuel infrastructure with biofuel and other environmentally friendly sources” in addition to “targeted site acquisitions in Finland and expanding into geothermal and district heading in Sweden”. Adven acquired Swedish geothermal heating and cooling company Eco2 Energy in May 2014 and local district heating firm Enycon in June 2015.
Throughout its ownership, EQT reduced Adven’s carbon emissions by 35 percent, with Arminen highlighting the cost savings netted to clients in addition to the environmental benefits of the transformation. Since 2012, Adven’s employee force also increased by 50 percent, with Adven’s earnings before interest, tax, depreciation and amortisation standing at €30 million last year.
EQT is due to start fundraising for its third flagship infrastructure fund in the second quarter of 2016, targeting between €2.5 billion and €3 billion, sources recently told Infrastructure Investor.
The fund manager is also said to be eying a sale of Germany’s EEW Energy From Waste (EEW) which could net it up to €2 billion, according to sources. A consortium of Macquarie Infrastructure and Real Assets and local utility Steag is said to have submitted a bid for the business earlier this autumn. China’s Enterprises Water Group, China Everbright International and Beijing Capital Group are also said to be looking to buy the asset. EQT originally invested in EEW in March 2013.