Quinbrook acquired Scout as a start-up in 2017 for an initial investment of just US$6 million
Quinbrook sells Scout Clean Energy to Brookfield for $1bn. (Credit: Enrique from Pixabay)
Quinbrook Infrastructure Partners (“Quinbrook”), a specialist investment manager focused exclusively on new infrastructure needed for the energy transition, announced today the execution of binding contracts for the sale of its portfolio company, Scout Clean Energy (“Scout”), to Brookfield Renewable for c. US$1 billion in cash on completion.
Quinbrook acquired Scout as a start-up in 2017 for an initial investment of just US$6 million. A partnership was established with Scout’s founder and CEO Michael Rucker to create a large-scale, vertically integrated wind power producer focused on the development, construction, ownership and operational management of large-scale wind power assets diversified across multiple US states and power markets.
Over that period, Quinbrook deployed a further US$470 million of equity capital from its managed funds and spearheaded the rapid growth of Scout into a fully integrated developer, owner and operator of a diverse and multi-technology asset portfolio spanning 1,200 MW of operational wind projects in four states, including 400 MW managed on behalf of third parties, and plans to deliver over 22 GW of wind, solar and storage projects across 24 states by the end of this decade. Of these projects, 8.6 GW have interconnection queue positions and 2,500 MW are in late-stage development with pending construction starts.
David Scaysbrook, co-founder and Managing Partner of Quinbrook commented, “Building Scout from a start-up into the significant and successful business it is today has been a five-year long commitment by the Quinbrook team working in a close partnership with Michael and Scout management. We have endured and overcome many challenges together, which marks this venture a resounding success on many levels. Scout hosts a remarkable collective of professionals, and we are proud of all that we have accomplished together. We have exceeded our plans for investor value creation by sponsoring Scout from its infancy, and now is the right time for us to hand the business on for its next growth chapter. We fully expect Scout to feature prominently in the US renewables landscape in the coming years.”
Scout’s pipeline has grown rapidly since 2019, in particular, and has achieved 65 percent year-on-year growth in scale over that period. Over 130 landowners in regional areas have benefited from long term land lease programs, and local communities hosting Scout projects have benefited from more than 3,400 local jobs supported and over US$240 million in committed financial benefits. Scout’s operating projects have generated an estimated 8.5 TWh of carbon-free power to date, avoiding an estimated 6 million tCO2e of carbon emissions based on average grid intensities.
Headquartered in Boulder, Colorado, Scout today employs over 112 professionals across development, construction and operations and occupies a credible ranking amongst the leading independent renewables businesses in the US market.
Michael Rucker, CEO and founder of Scout commented, “When Quinbrook first decided to sponsor Scout as a portfolio company, we were a very small team with big dreams. With the leadership of David and his team, Scout has been able to rapidly expand its diverse pipeline of wind, solar and battery storage projects across the United States. The accelerated growth Scout has experienced is a direct result of Quinbrook’s support and confidence in our business model. I am forever grateful that David and his specialist investment team at Quinbrook had the confidence to invest and execute on our plan to become a major vertically-integrated developer, owner and operator in US renewables.”
BofA Securities, Inc. served as lead financial advisor and KeyBanc Capital Markets Inc. served as financial advisor to Quinbrook on the sale of Scout and Skadden, Arps, Slate, Meagher & Flom LLP acted as external legal counsel to Quinbrook.
Source: Company Press Release