AMP Capital has agreed to sell its 50% stake in ESVAGT to its co-investor 3i Infrastructure. This will result in 3i Infrastructure holding 100% of the equity in ESVAGT.
ESVAGT is a leading offshore vessels owner and operator in the North Sea supporting the offshore wind and oil & gas industries. ESVAGT’s service operation vessels (SOVs) are a key enabler of the rapidly growing offshore wind industry.
AMP Capital has been an investor since 2015. Recognising the importance of the energy transition, AMP Capital and 3i Infrastructure repositioned ESVAGT’s strategy away from the oil & gas industry and towards the offshore wind industry, growing the offshore wind segment from 15% of EBITDA in 2015 to the majority of EBITDA in 2021. The offshore wind market, and hence demand for SOVs, is expected to grow strongly over the coming years, as many European governments and US states have set ambitious offshore wind build-out targets as part of their wider net-zero emissions plans.
During AMP Capital’s ownership, the co-investors supported management in delivering a number of significant value creation initiatives, including:
• Winning 6 long-term offshore wind contracts
• Developing the business’ international offshore wind growth strategy, including the establishment of a US joint venture
• Concluding a historic multi-contract deal with TotalEnergies in Denmark
• Refinancing in December 2017 to increase growth funding capacity
• Providing follow-on capital investments to support offshore wind growth
Phil Pacey, Principal, AMP Capital and Asset Manager for ESVAGT, commented: “We have been invested in ESVAGT since 2015 and are proud to have supported management in growing a leading SOV platform that has created significant value for our investors. ESVAGT has a crucial role in servicing offshore energy, and our sale reflects the maturity of our investment and the attractiveness of the market for high-quality assets that support the energy transition. We wish ESVAGT’s management team, employees and 3i Infrastructure continued success in the future.”
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About AMP Capital
AMP Capital is a global investment manager with a heritage and strength in real estate and infrastructure, and experience in fixed income, equities and multi-asset solutions. AMP Capital has been investing in infrastructure since 1988 and has US$20bn infrastructure equity and debt assets under management as at 30 June 2021.1 AMP Capital has been ranked in the top 10 infrastructure managers globally, based on total capital raised.2 AMP Capital is owned by AMP Limited, which was established in 1849, and is one of Australia's largest retail and corporate pension providers.
1 As at 30 June 2021. Figure consists of the Net Asset Value of certain funds and clients managed by AMP Capital taking into account all of the assets less any liabilities. This includes cash and liquidity of such funds in addition to any committed but undrawn capital.
2 Derived from the 2021 Infrastructure Investor 100. Ranking based on the amount of infrastructure direct investment capital raised by firms between 1 Jan 2016 and 31 Aug 2021
While every care has been taken in the preparation of this document, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) makes no representation or warranty as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. Neither AMP Capital nor any company in the AMP Group guarantees the repayment of capital or the performance of any product or any particular rate of return referred to in this document This document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This document is not intended to be and does not constitute financial advice nor a recommendation to subscribe for or purchase any investment by any person in any jurisdiction nor does it constitute an offer, solicitation or invitation to subscribe or purchase any investment in any jurisdiction where it would be contrary to the laws, regulations or directives in force or applicable in such jurisdiction.