SENNA

CVC Backs Low Carbon in £1.1bn Deal

LONDON, March 13 - Private equity firm CVC Capital Partners has agreed to acquire a majority stake in Low Carbon, a leading UK renewable energy company, in a deal worth £1.1 billion, according to people familiar with the matter.

The transaction underscores the growing investor appetite for assets in the renewable energy sector as governments and corporations race to meet ambitious climate targets. Low Carbon, founded in 2011, develops, owns and operates solar, wind and battery storage projects across the UK and Europe.

"This investment from CVC is a major vote of confidence in our business model and the continued growth of the renewable energy sector," said Roy Bedlow, founder and chief executive of Low Carbon. "We look forward to partnering with CVC to accelerate our ambitious plans to deliver more clean energy projects."

Under the terms of the deal, CVC will take a 75% stake in Low Carbon, while the company's management team will retain a 25% holding. The transaction is expected to close in the second quarter of 2023, subject to regulatory approvals.

Industry analysts said the deal highlights the increasing competition for assets in the renewable energy infrastructure space, where institutional investors are pouring capital in search of steady, inflation-linked returns.

"Low Carbon has established itself as a leading developer and operator of renewable energy projects in the UK and Europe," said Mark Dooley, global head of infrastructure at CVC. "We see significant growth potential as the continent continues its transition to clean energy."

The acquisition comes as governments across Europe ramp up efforts to reduce reliance on fossil fuels and meet net-zero emissions targets. In the UK, the government has pledged to reach 50GW of offshore wind capacity by 2030, up from around 10GW currently.

Low Carbon's portfolio includes more than 2GW of operational and in-development solar, wind and battery storage projects. The company has raised over £1 billion in funding from institutional investors to date.

Financial terms of the CVC transaction were not disclosed, but industry sources said the deal valued Low Carbon at around £1.1 billion, representing a significant premium to the company's previous fundraising rounds.