Longroad Energy Announces $500m Equity Investment from MEAG, NZ Super Fund, and Infratil

Aug 4, 2022 | News

Longroad Energy Holdings announced a $500m equity investment by MEAG, acting as asset management arm for entities of Munich Re, alongside two of the company’s existing investors, the NZ Super Fund and Infratil, a listed entity managed by Morrison & Co.

The investment will support Longroad’s strategic shift from a primarily “develop to sell” business model to one that is more oriented towards ownership, and will accelerate the expansion of its current 1.5 GW portfolio of owned assets, to 8.5 GW of wind, solar, and storage projects over the next five years.

“This important infusion provides Longroad with the capital to rapidly transition to a strategy biased to asset ownership. It also will fuel our acquisition goals and continue to support our investments in adjacent sectors, as we did recently with Valta Energy in the DG space,” said Paul Gaynor, CEO of Longroad. “We are thrilled to have MEAG join with our existing investors to power our robust growth plans, and we appreciate their collective support as we make strides in implementing our ambitious near-term objectives.”

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Dr. Alexander Poll, MEAG’s Senior Investment Manager responsible for U.S. infrastructure investments: “This investment is a significant step to further increase the U.S. renewable portfolio for Munich Re. Given Munich Re’s strong position in the U.S. insurance market, we are interested in further investing in the United States.” Martin Kaufmann, Senior Investment Manager MEAG U.S. infrastructure investments: “This investment makes an important contribution to Munich Re’s net-zero climate commitment under the Net-Zero Asset Owner Alliance (AOA), which Munich Re joined in 2020. We are also pleased to have teamed up with professional partners on this investment to build a successful long-term relationship.”

NZ Super Fund Head of External Investments and Partnerships Del Hart said: “Longroad has been one of the NZ Super Fund’s most successful investments and, in line with our long-term, partnership approach to infrastructure development, we are pleased to both welcome MEAG as a co-investor and contribute more capital ourselves. It has been exciting to see Longroad grow since we first invested in 2016 and we look forward to seeing it continue to deliver both strong financial returns and positive environmental and social outcomes.”

“Infratil is extremely happy with this outcome,” said Jason Boyes, CEO of Infratil. “We remain very optimistic about the opportunities and outlook for Longroad. It is well-positioned in a key geography, with high-quality operating assets, built-in growth through its development portfolio, and a proven team. The new investment from a leading global infrastructure investor in MEAG is a strong endorsement of the business and the sector.”

Source: PR Newswire

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