An independent private equity fund management Metier, through its most recent Sustainable Capital Fund, has made a substantial investment into Broadreach Energy, in support of C&I renewable energy projects across sub-Saharan Africa.
A joint press release stated that the transaction is centred around Broadreach Energy’s existing commercial, industrial and small-utility scale renewable energy portfolio and operations, and provides a pipeline to invest around $25 million in renewable energy, energy efficiency and related projects across sub-Saharan Africa.
Broadreach Energy was founded in 2014 by a group of like-minded individuals, with a vision to be the bridge between the technical and financial worlds of renewable energy.
The company specialises in building, operating and maintaining clean energy generation and energy efficiency projects for its clients throughout SSA, ranging from stand-alone solar photovoltaic (PV) plants in Namibia and Rwanda to rooftop installations throughout South Africa.
Broadreach claims to be one of the pioneers of power purchase agreements (PPA’s) in the commercial and industrial (C&I) solar PV sector in South Africa and has developed, advised on and invested in projects totalling over 30MW.
The transaction with Metier enables Broadreach Energy to pursue, build and scale its renewable energy strategy in the C&I and small utility-scale sectors.
According to the press release, Metier’s Sustainable Capital practice has garnered significant traction since its inception in 2009.
Building on the success of its predecessor Sustainable Capital Fund (the tenth pooled vehicle for the Metier team), Metier has to date received $133 million in commitments to its second Sustainable Capital Fund (MSC II).
MSC II will support renewable energy, energy efficiency, water and waste management investments in sub-Saharan Africa. Broadreach Energy is the first investment for MSC II.
Commenting on the development, Marc Immerman, MSC II’s managing principal, said: “We look forward to working with the Broadreach Energy team to grow their business and generate attractive renewable energy investment opportunities targeting C&I customers across Africa.”
Managing director of Broadreach Energy, Adam Bekker, also commented: “We are delighted to have Metier as our partners. Their supportive approach has already had an impact on our business and their investment is a game changer for us. With Metier on board we have the ability to achieve our goal of building a leading African clean energy company.”
Source: ESI Africa