Sandbrook and its co-investors, Public Sector Pension Investment Board (PSP Investments) and the Investment Management Corporation of Ontario (IMCO) will acquire NeXtWind from a syndicate led by Crestline Investors
Sandbrook, partners to acquire NeXtWind. (Credit: Waldemar on Unsplash)
US-based private investment firm Sandbrook Capital, together with its co-investors, has signed an agreement to acquire German renewable energy company NeXtWind Capital.
The co-investors include Public Sector Pension Investment Board (PSP Investments) and the Investment Management Corporation of Ontario (IMCO).
Sandbrook and partners would acquire NeXtWind from a syndicate led by Crestline Investors, an investment management firm based in Fort Worth, Texas.
Under the terms of the agreement, Sandbrook, PSP Investments and IMCO will commit up to $750m equity capital to acquire NeXtWind’s existing portfolio and fund future growth.
Sandbrook co-founder and partner Ken Ryan said: “We have been looking to enter this space for several years and are confident we have the right team and capital base to become a leading player in the German renewables market.”
PSP Investments Real Assets Investments senior vice president and global head Patrick Samson said: “We are proud to join forces with NeXtWind’s highly experienced team to deliver on their repowering strategy and to reinforce our commitment to using capital and influence to support the transition to global net-zero emissions by 2050.”
IMCO infrastructure head managing director Matthew Mendes said: “This is IMCO’s first investment in the German wind energy sector, and demonstrates our commitment to boost renewable energy production and enable the global energy transition, in alignment with IMCO’s Climate Action Plan.”
Upon closing of the transaction, NeXtWind will be well-positioned to acquire and repower wind assets and become a large renewable energy company in Germany and beyond.
Germany is the largest onshore wind market in Europe with around 58GW of installed capacity at the end of 2022.
Sandbrook Capital is a private investment firm which exclusively partners with companies focused on transforming the global energy infrastructure.
PSP Investments manages a diversified global portfolio with investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments.
IMCO operates under an independent, not-for-profit, cost recovery structure, and provides several investment management services.
NeXtWind managing partner co-founder Ewald Woste said: “With this newly announced acquisition and partnership, we have the capital to match our business development and operational expertise and grow the amount of renewable energy produced from older wind sites, helping the energy transition and also increasing Germany’s energy security.”
Crestline Europe chief investment officer Michael Guy said: “As the lead investor in the first funding round raised by NeXtWind, we identified a best-in-class team and an important market opportunity with the complexity, scale and attractive risk-return characteristics that we look for in our investment set.”