Aviva Investors, the global asset management business of Aviva plc, is to acquire an initial 35% shareholding in Innovo Renewables.
Italian-based Innovo develops, constructs and manages renewable energy projects across Italy, the UK and Spain.
The agreement, which can be raised to 50% within 24 months, will help Innovo scale up its business and increase the development of renewable energy projects across its primary markets.
The finance will also support the development of its construction and operational capabilities as it aims to transform from a renewable energy developer into one of Europe’s leading independent power producing platforms.
Innovo Renewables currently has a five-year pipeline of more than 2.8GW in solar PV, onshore wind and battery storage projects across its core markets of Italy, the UK and Spain, with ambitions to expand into additional markets across Europe.
As part of the agreement Rodolfo Bigolin, founder of Innovo Renewables, will remain in his role as chief executive with Roberta Benedetti appointed as non-executive chair.
Benedettiis a sustainability-focused investor and impact consultant, with experience investing across private equity, credit markets and investment banking and an extensive background including senior management roles at Enel and E.ON.
Aviva Investors, managing director for infrastructure Darryl Murphy said: “We are pleased to complete our investment with Innovo Renewables and support the company’s aspiration to grow its capabilities and energy generation capacity across Europe.
“We have ambitious plans to expand our infrastructure equity portfolio, which we see as an important element within the long-term growth and sustainability objectives of our Real Assets business.
“Importantly, this deal sees us invest in the Innovo platform as a whole, rather than an individual asset.
“We believe this approach represents the future of infrastructure investing, creating multiple revenue streams, and providing our infrastructure investment programme with significant scalability and future growth potential.”
Bigolin added: “The investment of Aviva Investors less than 1.5 years from Innovo Renewables’ foundation represents another milestone on our growth path.
“We are very proud that one of the leading managers of real assets investments has chosen to invest into our company, trusting our capacity to implement projects that support the ongoing energy transition.
“The deal with Aviva Investors confirms the market attractiveness of Innovo, following the announcement in December 2022 of Iberdrola Renovables joining our subsidiary company, iCube, for the development of renewable energy projects in Italy.”