Equis advisors kick off talks with potential investors

18 April 2017 - 12:00 am UTC

Advisors to Equis Group have begun reaching out to potential investors to acquire direct equity stakes in its estimated USD 4.5-5.5bn renewable energy portfolio, sources said.

The Singapore-based fund manager has appointed Credit Suisse (Singapore) and JP Morgan (SEA) as financial advisors and global coordinators on a restructuring transaction to bring in new investors. 

A pre-marketing round of meetings with potential investors has commenced, a source familiar with the process said. No deadlines have been set yet for a formal bidding launch or indicative offers.

Skadden, Arps, Slate, Meagher & Flom are the legal advisors. 

Equis is also working on a Singapore business trust listing for 18 of its operational assets, as reported. UBS and Credit Suisse are advising on the process which is running in parallel with the restructuring. This will allow any new direct investors to also have a say on the trust listing, the source added.

The restructuring involves 100% of 102 operational assets, totaling 4.7GW of solar, wind and hydro generation assets across Australia, India, Indonesia, Japan, the Philippines, Taiwan and Thailand built and operated by several Equis controlled platforms. The private equity firm has a further 71 assets and 6.3GW under development, it said in a statement today (18 April).

The transaction will allow existing investors, which include a number of managed investment vehicles, to exit their investment.

They will be replaced by new strategic or financial investors who will invest directly into Equis Energy to support management’s growth strategy over the long term.

Equis expects to add 1-2 GW per annum based on its historical track record and current run rate, the source said. 

The private equity firm has raised over USD 2.7bn in equity since its launch in 2010, from investors that include DEG, Netherlands Development Finance Company FMO, MassMutual and Partners Group.

Equis Asia Fund II closed at USD 1bn in 2015 to deploy capital over a three to four year investment period into the firm’s platforms’ investment pipeline. The firm also raised USD 300m that year for Equis Direct Investment Fund – a follow-on fund to Fund I – and an additional USD 400m from existing partners was directly committed to the Japan Solar and Energon platforms.