Alternative asset manager ICG has announced that its ICG Infra I fund has acquired Dos Grados, a leading renewable platform located across Spain and Portugal.
The transaction represents the €1.5bn debut infrastructure fund’s eighth deal and its fourth within the renewable energy sector.
Headquartered in Madrid, Spain, Dos Grados has a portfolio of 900MW of renewable projects under development across Iberia, comprising four PV solar assets and two hybrid assets (solar and wind).
The first project in Portugal, a 126MW solar photovoltaic plant, will start construction in early 2023, with the rest of the portfolio targeting ready-to-build dates between 2023 and 2024.
The Dos Grados team has previously deployed €1.8bn of investment capital and constructed more than 1GW of electricity generation plants.
ICG Infra will work with the Dos Grados management team to build and operate the existing projects in the long-term, while continuing to support organic and inorganic expansion across Spain and Portugal.
The acquisition of Dos Grados is ICG’s Infra first acquisition in Iberia, a market that benefits from attractive long-term fundamentals with one of the best renewable resources in Europe, supported by ambitious Net Zero targets.
ICG Infra successfully raised €1.5bn in February 2022 and is currently more than 75% deployed having also acquired British Solar Renewables (BSR) in July 2022 and Zeplug in September 2022.
Guillaume d’Engremont, head of infrastructure at ICG, said: “Dos Grados is an impressive renewable platform, well-aligned with the Fund’s focus on sustainable infrastructure.
“We’ve known the management team for many years and are delighted to be partnering with them as they construct their existing pipeline and embark on new opportunities within the energy transition.”
Dos Grados chief executive Luis Palacios added: “We are delighted to partner with ICG Infra as we look to accelerate our development and expand our capabilities in adjacent energy transition sectors.
“We are seeing more demand than ever for renewable energy sources, and with the support of ICG Infra, we look forward to growing our business with a partner that fully understands and is committed to funding renewables with a long-term approach.”