New Zealand-based infrastructure investor Infratil and the country’s sovereign wealth fund NZ Super Fund have entered the US renewable energy market via an investment into renewables developer Longroad.
Longroad was founded this year after former renewables giant SunEdison filed for bankruptcy. Its founders – Paul Gaynor, Michael Alvarez, Pete Keel, and Charles Spiliotis – were the former management team of First Wind, which was acquired by SunEdison for $2.4 billion in 2014. Infratil and NZ Super will own Longroad alongside management.
The partners said their investment in Longroad will amount up to $100 million, with more potentially to be deployed over time in operational assets. The pair already have investments in renewable energy in Australia, New Zealand and in Europe.
“We are attracted to the risk adjusted returns that are available in global renewables, and the investment in Longroad, with the capability that the team offers, will help us access this sector and the shifting trend to clean energy in the United States,” Matt Whineray, NZ Super chief investment officer said in a statement.
Marko Bogoievski, chief executive of Infratil, added that they examined a number of potential opportunities in the US market, with Longroad the best candidate to meet their ambitions.
The Longroad investment will be managed by management firm H.R.L. Morrison & Co on behalf of Infratil and NZ Super.