Newsroom

The third episode of Insid'ER Talks is now live! In this episode, we explore the challenges faced by a major renewable energy company like EDPR, which is nearly 100% green, as well as the issues surrounding public acceptance of wind energy projects. Our special guest is Etienne Thomassin, CEO for France and Belgium at EDPR and board member of France Renouvelables.

Join us as we delve into the world of energy transition, where leading experts and key industry players share their insights, decode market trends, and discuss the hurdles that need to be overcome for a successful transition. Expect compelling, insightful content, expertly guided by our analyst, Malena Reali.

Don't miss future episodes! Subscribe on YouTube or your favorite podcast platform!

Tevali Partners is proud to announce that it has advised Quaero Capital on the sale of 128 MW of operational wind energy and 60 MW of solar energy in development in France.

This transaction represents a significant milestone in the complete cycle of asset acquisition and divestment. Tevali Partners had previously advised Quaero Capital on the acquisition and initial financing of these assets, showcasing its expertise and ability to support clients throughout the entire investment lifecycle. The portfolio consists of a diversified set of 12 high-performing onshore wind farms, all located in France, comprising 49 modern turbines, alongside additional development projects. The portfolio also benefits from regulated pricing over 15 to 20 years, with a significant portion (between 30% and 60%) indexed to inflation.

Steven Kassab, co-founder of Tevali Partners, stated: "We are especially proud to have completed this transaction, not only due to the quality of the assets and the substantial value creation it represents, but also because we were able to support Quaero Capital throughout the entire cycle, from acquisition to sale. This long-term process allowed us to sell these assets under very favorable conditions, reaffirming the strength of our approach and our strong working relationships."

This transaction further solidifies Tevali Partners' position as a leading independent advisor for mid-cap transactions in the renewable infrastructure sector.

Q Energy has finalized the financing for the Lac de Longchamps plant, the largest floating solar power plant in Europe, located in Perthes, Haute-Marne. This senior financing, amounting to €44 million, was secured from a banking consortium comprising BPI France and Crédit Agricole. Tevali Partners is proud to have advised Q Energy on this transaction, which marks a significant milestone in the expansion of floating solar power in Europe.

Steven Kassab, co-founder of Tevali Partners, remarked: "The financing for the construction of this solar power plant is built on solid fundamentals, underpinned by two CRE tenders that guarantee the electricity sale price for the next 20 years. We are confident that floating solar power has substantial potential in Europe, thanks to its reduced landscape impact and limited CAPEX. To finalize this financing, we also leveraged the working relationships developed during previous transactions for Q Energy."

This financing is groundbreaking as it supports an innovative technology still in its early deployment stages in Europe. Construction of the plant began in October 2023 and is scheduled for completion in the first quarter of 2025. The plant will have a production capacity of 74.3 MWp, corresponding to an annual production of 81.3 GWh.

The second episode of Insid'ER Talks is now available! This episode delves into the critical issues of energy sovereignty and supply security. Our guest is Nicolas Wolff, Executive Vice President and General Manager of Boralex Europe, and Vice President of France Énergie Éolienne, the professional association for wind energy.

Join us as we dive into the world of energy transition, featuring insights from renowned experts and key industry players who share their visions, decode market trends, and explore the challenges of achieving a successful transition. Expect rich and engaging content, guided by the voice and expertise of our analyst, Malena Reali.

Don't miss the upcoming episodes! Subscribe on YouTube or your preferred podcast platform!

Watch the second episode on YouTube

Insid'ER Talks is finally on your podcast platforms with an inaugural episode focused on BPI's efforts in financing the energy transition! Pascale Courcelle, Director of Real Estate, Energy, and Environmental Financing at BPI France, discusses BPI's ongoing initiatives to facilitate renewable energy financing through various tools and strategic actions.

In the upcoming episodes, join us as we dive into the world of energy transition, featuring insights from renowned experts and key industry players who will share their visions, decode market trends, and explore the challenges of achieving a successful transition. Expect engaging and rich content, guided by the voice and expertise of our analyst, Malena Reali.

Don't miss the upcoming episodes! Subscribe on YouTube or your preferred podcast platform!

Watch the first episode on YouTube

Quaero Capital has acquired a stake in EnergieTeam, one of the leading players in the French onshore wind market. Tevali Partners is pleased to have advised Quaero in a competitive process that involved several months of discussions and negotiations between the parties.

Steven Kassab, co-founder of Tevali Partners, stated: "We firmly believe in the strategic value of Quaero Capital's investment in one of the key players in the French onshore wind sector. This transaction highlights the maturity of Tevali Partners, which played a crucial role in a large-cap operation. The expertise our teams have acquired through platform/IPP transactions (notably Watt&Co, Corsica Sole, IEL, among others) and our deep understanding of renewable infrastructure were instrumental in the success of the investment process. Additionally, we leveraged the working relationships established during previous transactions between Quaero Capital and EnergieTeam, on which we also advised Quaero Capital."

As a reminder, EnergieTeam is the primary winner of the recent public tender for onshore wind. The company operates over 1.2 GW of installed capacity across 110 wind farms.

Quaero Capital manages a portfolio of over €2.8 billion in assets, primarily invested in telecommunications and infrastructure projects. By acquiring a stake in EnergieTeam, Quaero Capital strengthens its diversification and becomes a significant player in the European renewable energy landscape.

2023, robust activity with notable achievements.

In 2023, Tevali Partners underwent substantial transformation, driven by several especially noteworthy large-cap achievements.

A highlight of the year involved strengthening our partnerships with several key market players including Quaero Capital, CVE and Corsica Sole as well as welcoming new ones such as Q Energy, Altarea, and Infranity. These alliances strengthen our position as a boutique trusted advisor in the industry and reinforces brand and new visual identity. It aligns seamlessly with our strategic positioning and embodies our commitment to our core values of demanding excellence and expertise.

We successfully executed multiple major transactions, including Infranity’s minority stake acquisition in IEL (Iridium) and Q Energy’s sale of a 170 MW asset portfolio (Condor). The team also provided counsel to EnergieTeam in its refinancing operations of an asset portfolio of over 300 MW (Thoraga) and designed and structured an innovative €30M financing plan for CVE backed by a large solar portfolio under development (Praia).

In total, our team coordinated refinancing totaling €650M and facilitated M&A transactions with a value in excess of €2bn.

A resilient market within a challenging macroeconomic context

Our market analysis for 2023 revealed a landscape of evolving challenges and strategic shifts. A major point of concern is the continued market consolidation, as many players have integrated into larger groups this will constrain the future dynamics of the market. On the core infrastructure deals front, there has been a noticeable increase in liquidity costs impacting recent transactions. This economic pressure has led historical players in renewable infrastructure to pivot their investment strategies. Instead of continuing along traditional paths, they are now redirecting their investments through renewable asset platforms.

Up until mid-2023, the expected IRR by investors had not aligned with this shift in liquidity costs. The renewable energy infrastructure market had indeed shown a degree of resilience to these broader macroeconomic conditions. However, post-mid-2023, there has been a trend towards homogenization with other sectors, leading to a repricing of expected IRRs, now trending towards the high single digits. Additionally, a significant trend observed in the M&A processes is the prevailing presence of strategic investors (industrials) over financial investors (funds).

Tevali Partner' Outlook for 2024: a year of growth, innovation, and expanded market impact

As we enter 2024, Tevali Partners is poised for a year of growth and expanded capabilities. The beginning of the year marks the arrival of new team members and a strategic enhancement that positions us to extend our reach in mid-cap operations. This reinforcement of our team reflects our ongoing efforts to broaden our service offerings and deepen our impact on the market. A key focus for us in 2024 will be to build upon the groundbreaking transaction we facilitated for CVE. We intricately structured a bond financing model anchored to a portfolio of development projects. This success story not only showcases our expertise but also sets a precedent for future endeavours.

Currently, we are assisting a developer in securing financing and equity for a significant 600MW platform (mid to late stage development), signalling a promising opportunity for interested parties as we prepare to launch the consultation (interested parties are welcome to contact us). The first quarter of 2024 has already seen a robust deal flow, reflecting our growing team's dynamism and effectiveness. With a renewed identity that reflects our forward-thinking approach, Tevali Partners is well-equipped to face challenges and opportunities. We extend our gratitude to our clients and partners for their continued trust and look forward to forging stronger relationships and achieving shared successes in the year ahead.

2024 renewable energy M&A trends: shifting dynamics and emerging markets

The M&A market within the renewable energy sector is anticipated to undergo significant changes in 2024, particularly within private equity investments. A key factor driving this change is the rising cost of liquidity, which will likely constrain financing sources. Consequently, greater reliance is being placed on equity capital for investments, signifying a departure from leveraged strategies.

Additionally, the challenges faced by equity funds in raising capital from their LPs towards the end of 2022 and throughout 2023 are likely to manifest in 2024. This scenario will result in a more selective investment approach, with an increased tendency towards club deals among partner funds. Such collaborations could become a strategic way to pool resources and share risks, particularly in the face of tighter financing conditions.

Furthermore, 2024 is set to witness the strong emergence of new markets within the renewable energy sector, such as energy storage, energy efficiency, ecomobility, and hydrogen. These emerging fields offer substantial opportunities for diversification and expansion for companies engaged in the energy transition. This broadening of the market landscape not only provides new avenues for investment but also allows established players to expand their services and adapt to the evolving energy needs and technological advancements.

Overall, these factors collectively point towards a dynamic and potentially transformative year for M&A activities in the renewable energy sector.

Be stronger than your excuses! Go 2024!

Steven Kassab & Michael Tobelem
Founding Partners

Specializing in mergers and acquisitions in the energy and infrastructure sector for mid cap, Tevali Partners was recognized by the Leaders League for its leading strategic expertise.

This ranking distinguishes a year marked by high-level advisory work, such as those offered to Q Energy in the sale of a 170 MW asset portfolio, Infranity for its minority stake acquisition in IEL and Quaero Capital on the divestment of the assets of its Fund 1 for over 106 MW and for its minority stake acquisition in EnergieTeam. The team also provided counsel to EnergieTeam in its refinancing operations of an asset portfolio of over 300 MW (Thoraga), one of the largest operations in the french refinancing sector this year, among 5 other deals. The operations carried out with Quaero, Q Energy and Infranity strengthen our position in the mid-cap deals while the operation with EnergieTeam demonstrates our ability to handle large-cap deals.
 

This recognition consolidates Tevali Partners' position as one of the key players in the energy transition in France. Having initiated its activity in 2009, Tevali Partners is a pioneering M&A boutique in the market.