Global investment manager AMP Capital has entered into a 50/50 partnership with Invenergy Clean Power LLC (“ICP”) to invest in Invenergy’s operating and development portfolio of natural gas-fired power generation facilities across the United States, Canada and Mexico.
The investment provides AMP Capital access to one of the largest privately-held gas-fired generation portfolios in the US and a rare opportunity to invest in a low-emissions generation fleet with scale. The operating and development projects are diversified across multiple North American power markets, contract counterparties, and technologies.
AMP Capital and ICP will share joint ownership and governance of the new partnership, Invenergy AMPCI Thermal Power Holdings LLC (‘the portfolio’), while ICP will maintain day-to-day management of the business. ICP is an affiliate of Invenergy LLC (“Invenergy”), an independent Chicago-based developer, owner and operator of power generation facilities internationally. In addition to its extensive renewables platform, the Invenergy management team has built and developed nearly 12,000 megawatts (MW) of thermal facilities over the past three decades.
The portfolio is comprised of seven operating plants with net capacity of 2,680 MW in the US and Canada, one facility under construction in Pennsylvania, and two late-stage development projects in Mexico. It also includes an extensive early to mid-stage development pipeline in the US and Mexico.
Dylan Foo, Partner & Head of Americas Infrastructure Equity at AMP Capital, said: “This transaction represents a unique opportunity to invest in the North American power sector via a diversified portfolio, partnering with a premier developer and operator of power generation assets on a 50/50 basis.
“The investment offers an excellent entry point into a highly attractive sector, due to the calibre of Invenergy, the quality and diversification of the portfolio, and the growth prospects of the development platform.”
The portfolio investment has been made on behalf of investors in AMP Capital’s global infrastructure equity strategy. AMP Capital’s US infrastructure equity investments include Midwest fibre optics provider Everstream, the intermodal logistics company ITS ConGlobal, Chicago’s Millennium Garages, and Capistrano Wind Partners. AMP Capital currently has 40 employees based in offices in New York, Chicago and Orange County, California.
Simon Ellis, Partner & Global Head of Origination, Infrastructure Equity at AMP Capital, said: “AMP Capital is growing its presence in the North American infrastructure market and we are delighted to have secured this opportunity on behalf of our clients around the world.
We look forward to leveraging our energy investment and asset management experience and collaborating with Invenergy to realize the maximum value of the portfolio.”
Jim Murphy, President and Chief Operating Officer at Invenergy, said: “Invenergy has created a world-class platform for the development and operations of clean energy projects. AMP Capital shares a longer-term perspective and brings financial strength to our business, positioning our project portfolio for years of continued growth.”
RBC Capital Markets acted as sole financial advisor for AMP Capital. Goldman, Sachs & Co acted as lead financial advisor along with Credit Suisse for Invenergy. Legal advisors were White & Case for AMP Capital and Latham & Watkins LLP for Invenergy.
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About AMP Capital
AMP Capital is a specialist global investment manager with US$146.8 billion in funds under management as of 31 December 2017 and more than 250 investment professionals. AMP Capital has a heritage and strength in real estate and infrastructure, and specialist expertise in fixed income, equities and multi-asset solutions. Its majority shareholder is AMP Limited, which was established in 1849, and is one of Australia's largest retail and corporate pension providers. AMP Capital has a strategic alliance with Mitsubishi UFJ Trust and Banking Corporation, which is also a shareholder.