Terra Firma plans RE fund – reports

Terra Firma, the group owned by private equity tycoon Guy Hands, is looking to launch a $3bn (£2.6bn) renewable energy fund.

It is understood that Hands is seeking to raise a new fund called the Terra Firma Fund for Global Renewable Energy Infrastructure, targeting investments in the US, the Middle East, France and Italy.

Reports suggest the fundraising is evidence of mounting institutional interest in such assets as wind farms, with the China Development Bank (CDB) contributing to the fund.

Recharge understands this new fund is entirely separate from a planned £3bn ($4.8bn) renewables-focused investment fund – also with Chinese backing – reported in November 2012. 

Earlier this month it emerged that Terra Firma is seeking to sell Infinis, which claims to be third-largest UK clean-energy producer.  Infinis began life as a waste-to-energy specialist, but created a significant UK onshore wind presence through a series of deals.

Terra Firma is understood to have hired Barclays, Climate Change Capital, Deutsche Bank, and RBC Capital Markets to advise on a range of options, including the sale of Infinis or to float on the stock market.