FSI enters deal to acquire 40% stake in Terra-Gen from ECP

First State Investments (FSI), a leading global investor in infrastructure, has entered a deal with Energy Capital Partners (ECP), a leading power and renewables private equity investor, for the sale of a 40% stake in Terra-Gen held by ECP. 

Terra-Gen, based in New York, develops, constructs, and operates utility-scale wind, solar, energy storage, and geothermal electrical generation facilities throughout the United States. Terra-Gen's portfolio spans more than 30 generating facilities located primarily in California, with additional locations in Colorado, Minnesota, Nevada, New York, Texas, and Wyoming. The company currently operates more than 1,600 megawatts (MW) of facilities and has more than 3,000 MWs of projects under advanced development.

The acquisition is the third direct infrastructure investment in the U.S. by FSI, which manages more than US$8 billion of unlisted infrastructure investments globally with a focus on mid-market companies in the transportation, utility, and renewables sectors worldwide. The firms expect to complete the transaction in the fourth quarter of 2020 or early 2021, subject to regulatory approvals.

Citi and PJ Solomon served as financial advisors to ECP, with Latham & Watkins LLP acting as lead transaction counsel. Macquarie Capital served as financial advisor to FSI, with Mayer Brown LLP as lead transaction counsel.