UK ‘green’ infrastructure investor and developer, Equitix, has agreed to sell off a minority stake of the business to a private equity firm, for £1.3 billion.
Equitix is an investor, developer, and fund manager for a range of market assets within the infrastructure sector, including transport, renewable power, environmental services, utilities, and data networks.
This includes Energy-from-Waste (EfW) initiatives from wastewater treatment facilities, biogas generation plants, on- and offshore windfarm construction, as well as other energy transition assets.
Founded in 2007, Equitix has grown from a £1.3 billion business to more than £11.7 billion in assets under management since Guernsey-based Tetragon Financial Group (TFG) acquired a controlling interest in the business in 2015.
Equitix recently agreed to acquire Greenlink, a 504 MW electricity interconnector between Britain and Ireland, alongside Baltic Cable AB. After that, it became a majority shareholder in Bio Capital, a major market leader in anaerobic digestion in the UK, alongside Helios Energy Investments.
Inside the deal: Independent investment firm, Hunter Point Capital (HPC), has agreed to acquire a 16.1 per cent interest in Equitix for cash, excluding net debt.
Approximately 14.6 per cent of that minority stake will be acquired from majority owner, TFG Asset Management, with the remaining 1.5 per cent from Equitix management.
TFG Asset Management will remain the majority owner, alongside HPC and management.
Legal
BofA Securities acted as financial advisor and Dechert LLP served as legal counsel to Tetragon.
Latham & Watkins LLP acted as legal counsel to HPC.
Ashurst LLP served as legal counsel to Equitix.
Hugh Crossley, CEO of Equitix, said: “Equitix was founded as a responsible long-term investor in infrastructure assets, primarily focused on the UK. It has now evolved into an infrastructure developer and fund manager with over 300 assets in 24 countries and more than 400 employees.
“I am incredibly proud of what Equitix has achieved; we are a trusted partner managing global infrastructure assets, which we believe materially contribute to the lives of the communities they serve. I look forward to leading our team as it seeks continued growth and success in partnership with Tetragon, and now with HPC onboard.”
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