The Investment Climate

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Adam Barber
August 8, 2013
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This content is from our archive. Some formatting or links may be broken.
The Investment Climate

Sometimes being able to determine a sign of market maturity is simply down to the size and volume of transactions.

For the wind energy industry as a whole, the sector has seen numerous sales, acquisitions worldwide.

For the offshore industry, the burn has been slower, but reassuringly steady.

With this is mind, there were two transactions in this past week that demonstrated that overall, and despite its many detractors, the wind energy industry is starting to mature.

Terra Firma, the private equity firm run by Guy Hands announced that it is considering putting its renewable energy arm, Infinis, up for sale, whilst Japan’s Marubeni Corporation – already a co-owner of offshore wind installation firm, Seajacks, confirmed that it was buying a 25% stake in wind energy developer, Mainstream, for €100m.

Both transactions were for very different reasons.

Terra Firma’s announcement that it is to put Infinis up for sale, is largely to help the wider portfolio recoup some its losses from the firm’s acquisition and subsequent disposal of loss-making record label EMI.

The private equity firm hopes that the sale of the energy portfolio, which includes a £75m financing facility for onshore wind construction, will raise £1.5bn.

Marubeni, conversely, has made a number of aggressive acquisitions to boost its worldwide power generating capacity to 10GW. With the domestic drive to boost clean energy development in Japan in the wake of the Fukushima disaster, Marubeni is in a strong position to import the expertise it has acquired as the Japanese market develops.

The acquisition of a share of Mainstream will additionally enable the business to make good on its aims of developing projects in the emerging market – Mainstream already has interests in Chile and South Africa.

Taken together, both developments seem to offer positive reinforcement that the wind industry is an asset class that investors are willing to take a bet on.

And whilst some will shy away until they feel more comfortable, for those that take these first steps, there is very much a first mover advantage.

Sometimes being able to determine a sign of market maturity is simply down to the size and volume of transactions.

For the wind energy industry as a whole, the sector has seen numerous sales, acquisitions worldwide.

For the offshore industry, the burn has been slower, but reassuringly steady.

With this is mind, there were two transactions in this past week that demonstrated that overall, and despite its many detractors, the wind energy industry is starting to mature.

Terra Firma, the private equity firm run by Guy Hands announced that it is considering putting its renewable energy arm, Infinis, up for sale, whilst Japan’s Marubeni Corporation – already a co-owner of offshore wind installation firm, Seajacks, confirmed that it was buying a 25% stake in wind energy developer, Mainstream, for €100m.

Both transactions were for very different reasons.

Terra Firma’s announcement that it is to put Infinis up for sale, is largely to help the wider portfolio recoup some its losses from the firm’s acquisition and subsequent disposal of loss-making record label EMI.

The private equity firm hopes that the sale of the energy portfolio, which includes a £75m financing facility for onshore wind construction, will raise £1.5bn.

Marubeni, conversely, has made a number of aggressive acquisitions to boost its worldwide power generating capacity to 10GW. With the domestic drive to boost clean energy development in Japan in the wake of the Fukushima disaster, Marubeni is in a strong position to import the expertise it has acquired as the Japanese market develops.

The acquisition of a share of Mainstream will additionally enable the business to make good on its aims of developing projects in the emerging market – Mainstream already has interests in Chile and South Africa.

Taken together, both developments seem to offer positive reinforcement that the wind industry is an asset class that investors are willing to take a bet on.

And whilst some will shy away until they feel more comfortable, for those that take these first steps, there is very much a first mover advantage.

Sometimes being able to determine a sign of market maturity is simply down to the size and volume of transactions.

For the wind energy industry as a whole, the sector has seen numerous sales, acquisitions worldwide.

For the offshore industry, the burn has been slower, but reassuringly steady.

With this is mind, there were two transactions in this past week that demonstrated that overall, and despite its many detractors, the wind energy industry is starting to mature.

Terra Firma, the private equity firm run by Guy Hands announced that it is considering putting its renewable energy arm, Infinis, up for sale, whilst Japan’s Marubeni Corporation – already a co-owner of offshore wind installation firm, Seajacks, confirmed that it was buying a 25% stake in wind energy developer, Mainstream, for €100m.

Both transactions were for very different reasons.

Terra Firma’s announcement that it is to put Infinis up for sale, is largely to help the wider portfolio recoup some its losses from the firm’s acquisition and subsequent disposal of loss-making record label EMI.

The private equity firm hopes that the sale of the energy portfolio, which includes a £75m financing facility for onshore wind construction, will raise £1.5bn.

Marubeni, conversely, has made a number of aggressive acquisitions to boost its worldwide power generating capacity to 10GW. With the domestic drive to boost clean energy development in Japan in the wake of the Fukushima disaster, Marubeni is in a strong position to import the expertise it has acquired as the Japanese market develops.

The acquisition of a share of Mainstream will additionally enable the business to make good on its aims of developing projects in the emerging market – Mainstream already has interests in Chile and South Africa.

Taken together, both developments seem to offer positive reinforcement that the wind industry is an asset class that investors are willing to take a bet on.

And whilst some will shy away until they feel more comfortable, for those that take these first steps, there is very much a first mover advantage.

Sometimes being able to determine a sign of market maturity is simply down to the size and volume of transactions.

For the wind energy industry as a whole, the sector has seen numerous sales, acquisitions worldwide.

For the offshore industry, the burn has been slower, but reassuringly steady.

With this is mind, there were two transactions in this past week that demonstrated that overall, and despite its many detractors, the wind energy industry is starting to mature.

Terra Firma, the private equity firm run by Guy Hands announced that it is considering putting its renewable energy arm, Infinis, up for sale, whilst Japan’s Marubeni Corporation – already a co-owner of offshore wind installation firm, Seajacks, confirmed that it was buying a 25% stake in wind energy developer, Mainstream, for €100m.

Both transactions were for very different reasons.

Terra Firma’s announcement that it is to put Infinis up for sale, is largely to help the wider portfolio recoup some its losses from the firm’s acquisition and subsequent disposal of loss-making record label EMI.

The private equity firm hopes that the sale of the energy portfolio, which includes a £75m financing facility for onshore wind construction, will raise £1.5bn.

Marubeni, conversely, has made a number of aggressive acquisitions to boost its worldwide power generating capacity to 10GW. With the domestic drive to boost clean energy development in Japan in the wake of the Fukushima disaster, Marubeni is in a strong position to import the expertise it has acquired as the Japanese market develops.

The acquisition of a share of Mainstream will additionally enable the business to make good on its aims of developing projects in the emerging market – Mainstream already has interests in Chile and South Africa.

Taken together, both developments seem to offer positive reinforcement that the wind industry is an asset class that investors are willing to take a bet on.

And whilst some will shy away until they feel more comfortable, for those that take these first steps, there is very much a first mover advantage.

Sometimes being able to determine a sign of market maturity is simply down to the size and volume of transactions.

For the wind energy industry as a whole, the sector has seen numerous sales, acquisitions worldwide.

For the offshore industry, the burn has been slower, but reassuringly steady.

With this is mind, there were two transactions in this past week that demonstrated that overall, and despite its many detractors, the wind energy industry is starting to mature.

Terra Firma, the private equity firm run by Guy Hands announced that it is considering putting its renewable energy arm, Infinis, up for sale, whilst Japan’s Marubeni Corporation – already a co-owner of offshore wind installation firm, Seajacks, confirmed that it was buying a 25% stake in wind energy developer, Mainstream, for €100m.

Both transactions were for very different reasons.

Terra Firma’s announcement that it is to put Infinis up for sale, is largely to help the wider portfolio recoup some its losses from the firm’s acquisition and subsequent disposal of loss-making record label EMI.

The private equity firm hopes that the sale of the energy portfolio, which includes a £75m financing facility for onshore wind construction, will raise £1.5bn.

Marubeni, conversely, has made a number of aggressive acquisitions to boost its worldwide power generating capacity to 10GW. With the domestic drive to boost clean energy development in Japan in the wake of the Fukushima disaster, Marubeni is in a strong position to import the expertise it has acquired as the Japanese market develops.

The acquisition of a share of Mainstream will additionally enable the business to make good on its aims of developing projects in the emerging market – Mainstream already has interests in Chile and South Africa.

Taken together, both developments seem to offer positive reinforcement that the wind industry is an asset class that investors are willing to take a bet on.

And whilst some will shy away until they feel more comfortable, for those that take these first steps, there is very much a first mover advantage.

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Not a member yet?

Become a member of the 6,500-strong A Word About Wind community today, and gain access to our premium content, exclusive lead generation and investment opportunities.