Fengate Capital enters US renewables market

Infrastructure and real estate private equity firm Fengate Capital Management has entered the US renewables market with the acquisition of a 25 percent stake in a New Mexico wind farm.

Fengate’s first US renewables investment was for an undisclosed amount in the 120MW San Juan Mesa Wind Project, owned by a subsidiary of CityGroup.

Andrew Cogan, a director for infrastructure investments at Fengate, told sister publication Low Carbon Energy Investor the investment firm sees stable cashflows, the ability to meet environmental commitments and lots of opportunities in the US renewables space.

“It remains a growing industry with very positive regulatory forces behind it, there’s a strong commitment to renewable growth. Our investors prize renewable assets,” he said.

The project is operational, managed by an affiliate of NRG Energy and contracted to sell power to the Southwestern Public Service Company.

“The investment in San Juan Mesa provides an opportunity for Fengate to invest in a fully-contracted, brownfield asset with a strong operating record and establish a relationship with NRG, one of the largest operators of wind farms in the United States,” George Theodoropoulos, Fengate’s managing director of North America infrastructure, said.

Fengate is a real asset investment firm with a focus on infrastructure, real estate and private equity and $2 billion of assets under management. Its renewable energy portfolio includes solar, wind, hydro and biomass projects in Canada and the UK.

The firm also recently entered the UK’s renewable market when it bought two solar farms for C$110 million ($86 million; €76 million) in December. Fengate acquired the 39MW Raventhorpe project, the UK’s sixth largest solar farm at the time, and the 7MW Roanhead solar farm in Cumbria.