US-based investment firm Sandbrook Capital announced that it has partnered with PSP Investments and IMCO to acquire NeXtWind Capital Ltd, a German renewable energy company that specialises in revitalising onshore wind farms.
Sandbrook, PSP Investments, and IMCO will dedicate up to $750M (€683M) in equity capital toward NeXtWind.
The capital will serve the dual purpose of acquiring NeXtWind’s current array of operational wind assets and facilitating the company’s prospective growth endeavours.
Sandbrook Capital operates as a private investment firm, working closely with capable management teams to develop impactful companies that contribute to reshaping the global energy landscape.
Formed by five partners with extensive experience in renewable energy, the company has established offices in Stamford, CT, and London, UK.
Supporting Germany’s energy sector
NeXtWind’s leadership, including its founders Ewald Woste, Werner Süss, and Lars Meyer, possesses decades of experience in the German power industry, having held executive positions at major companies like E.ON, Vattenfall and STEAG.
With the transaction bolstering its financial foundation, NeXtWind will be well-prepared to acquire and revitalise German wind assets, solidifying its role as a leading renewable energy player in both the domestic and global markets.
This strategy also aligns with Germany’s status as Europe’s largest onshore wind market, boasting an installed capacity of approximately 58 GW by the close of 2022. Around 30 percent of this capacity, equivalent to nearly 13,000 turbines, has operated for over 15 years, creating a substantial avenue for repowering endeavours.
Ken Ryan, co-founder and partner of Sandbrook, expressed excitement about collaborating with NeXtWind’s management team, PSP Investments, and IMCO to expand their platform in Germany’s renewable energy sector.
“We are thrilled to partner with the NeXtWind management team as well as PSP Investments and IMCO to grow this platform in Germany,” Ryan says.
“We have been looking to enter this space for several years and are confident we have the right team and capital base to become a leading player in the German renewables market,” he adds.
Patrick Samson, senior vice president and global head of real assets investments at PSP Investments, highlighted the significance of onshore wind repowering for Germany’s energy transition.
“Onshore wind repowering represents an important lever in enabling Germany’s energy transition. We are proud to join forces with NeXtWind’s highly experienced team to deliver on their repowering strategy and to reinforce our commitment to using capital and influence to support the transition to global net-zero emissions by 2050,” Samson says.
For IMCO, the investment underscores their commitment to promoting renewable energy and aligning with their Climate Action Plan for a global clean energy transition.
“This is IMCO’s first investment in the German wind energy sector, and demonstrates our commitment to boost renewable energy production and enable the global energy transition, in alignment with IMCO’s Climate Action Plan,” says Matthew Mendes, managing director and head of infrastructure at IMCO.