Prime Capital launches €600m clean energy vehicle

Prime Renewables will target solar PV and onshore wind across Europe with the aim of generating 400MW of power. The vehicle will be open to institutional investors through 25-year profit-participation notes.

Frankfurt-based Prime Capital has launched a €600 million vehicle – Prime Renewables – targeting renewable energy investments across Europe, the firm announced today.

Prime Renewables bills itself “as structured to provide long-dated exposure to these [renewable] assets and is tailored to the requirements of institutional investors, initially through the issuance of 25-year profit-participation notes”.

The new vehicle will target what it calls “low complexity technologies” like solar and onshore wind power across Europe with the aim of generating some 400 megawatts of power. 

It will invest primarily in brownfield assets – “the strategy of the company will be to avoid development risk,” Prime said – and will look to hold investments for the duration of “their economic lives,” the firm explained.

The new vehicle will be advised by WHEB Group’s infrastructure team, led by former Macquarie veterans Matthew Hammond and Tom Williams.

“We have created a company which generates stable, long-dated yields while minimising risks associated with investing in renewable energy generation and infrastructure – and does so regardless of politics, regulation and financial or national crises,” commented Thomas Keller, chief risk officer of Prime Capital.

Independent asset manager Prime Capital has structured, managed or advised on close to €5 billion of assets, the company said in a statement. It employs over 30 people in Frankfurt and London.