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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

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.

Initiatives & Energies Locales (IEL) is a full-service French renewable energy operator that has evolved from a wind developer to become a leading multi-energy Independent Power Producer (IPP) in the western part of France. The company operated 147 MW in 2022 and plans to develop and operate more than 550 MW by 2025 with an overall pipeline of 1.2 GW.

In this growth context, IEL was looking for an investor with a real interest in the energy transition to partner with. The contemplated transaction included a capital increase alongside the acceleration of IEL's growth to develop the group by building new capacities in western France and participating in the decarbonization of the economy.

Infranity, a very attractive investor in the financing of the energy transition in Europe, has invested in 14 renewable energy transactions since the creation of the fund in 2018 for a total volume of 1.3 billion euros. The financial support provided by Infranity is based on a secured pipeline of greenfield renewable energy assets for 644 MW, representing 66% of their targeted net operational capacity for 2027. In addition to financially contributing to the company's growth, Infranity has acquired a minority stake in the company.

In this transaction, Degroof Petercam IB and Tevali Partners were mandated by Infranity as financial advisors to review the investment opportunity as well as to conduct the transaction. Clifford Chance was appointed as legal advisor and Syneria as technical advisor.

For Steven Kassab, co-founder of Tevali Partners: "We are proud to have participated in this decisive operation for the growth of IEL's business by accompanying Infranity, a very dynamic fund in the financing of the energy transition in Europe. We have positively assessed this investment opportunity, which seems particularly relevant in a context of strong growth for IEL."

On July 19, 2023, our team had the opportunity to meet Pierre Mastalski. This "adventurer of enterprise and the sea" shared with us the incredible story of his solo crossing of the Atlantic on a rowboat, whose water purification system was powered by a small photovoltaic module.

This is a powerful symbol of the revolutionary potential of renewable energies, but also of personal achievement and determination. Pierre Mastalski has been a companion on Tevali's journey for over a decade: in 2012, when he was looking for sponsors for his odyssey, we supported him in preparing for his extraordinary journey, which eventually took him from Dakar to Cayenne in 42 days at sea. His commitment aligns with our own values and continues to provide inspiration to our team.

To mark this event, we organized a summer drink, bringing together current and former Tevali employees, to share this memorable meeting together.

On Tuesday, July 11, 2023, the 9th GreenUnivers conference on renewable energy financing took place, bringing together more than 300 professionals. Tevali Partners has been a partner of this conference cycle for six years, and had the opportunity to participate and discuss the current challenges of financing renewable energy projects.

Arthur Charpentier, Vice-President at Tevali Partners, spoke at a round table on the following topic: "Financing conditions, a worrying deterioration?".

Alongside him, Christine Delamarre (Crédit Agricole Leasing & Factoring - UNIFERGIE), Alexis Courtillon (Renner Energies), and Philippe GARREL (Sienna Private Credit) were able to take part in the discussion.

According to him, the market remains extremely attractive for investors as it allows a certain predictability, but it must adapt so that more projects can develop: "The market was waiting for a revaluation of incomes: many developers were waiting for prices to be revised upwards to allow many projects to get off the ground. With tariffs at 72 € per MWh for wind, for example, projects are not developed. So, among developers, there are pockets of projects that are still on standby."

However, there is reason to remain optimistic. Indeed, the Tevali Partners’ VP indicates that the results of the CRE's latest wind tender have sent a positive signal to the market. By setting a tariff of 85 € for the winning projects, this decision offers new perspectives for this renewable energy source and can stimulate the emergence of many projects that had previously remained on hold.

The Tevali team was complete for the Renewable Energy Regatta!

From the Frioul port in Marseille, our colleagues embarked on a day of regatta with other companies in the sector. 40 companies were present: developers, turbine manufacturers, consultants, lawyers... an opportunity for the energy transition and renewable energy sector to weave and cultivate connections.

For the Tevali Partners team, it was also an opportunity to proudly display our new logo and our new colors, revealed this week.