APG, CalSTRS and a subsidiary of the Abu Dhabi Investment Authority are acquiring Arevon Energy Inc., a new renewable energy company formed by the combination of Capital Dynamics' U.S. clean energy infrastructure team with its energy asset management affiliate Arevon Asset Management.
APG Asset Management, the in-house manager of the €495.3 billion ($582.5 billion) ABP, Heerlen, Netherlands, the $308.6 billion California State Teachers' Retirement System, West Sacramento, and Abu Dhabi Investment Authority are existing Capital Dynamics investors and will own 100% of Arevon Energy. ADIA has estimated assets under management of about $700 billion.
The investor group's ownership of $2.4 billion of assets (excluding tax equity) held through Capital Dynamics Clean Energy and Infrastructure V and Capital Dynamics Clean Energy and Infrastructure VII JV is expected to be transferred to Arevon, subject to regulatory approval and other customary closing conditions, a Capital Dynamics spokesman said in an email.
"By investing alongside proven partners in Arevon, we are supporting the creation and future growth of an innovative renewable energy platform," said Khadem AlRemeithi, executive director of the real estate and infrastructure department at ADIA, in an Arevon news release.
"This transaction represents an opportunity to continue our clean energy investments alongside our partners and play a significant role in the U.S. energy transition," said Steven Hason, managing director and head of Americas real assets at APG, in the same news release.
CalSTRS confirmed the information in the news releases but declined further comment. ADIA and APG declined comment beyond the news releases.
John Breckenridge, former senior managing director and head of clean energy infrastructure at Capital Dynamics, is Arevon's CEO. Other members of Arevon's management team include executive vice presidents: Justin Johnson, former head of Arevon Asset Management, as chief operating officer; Brian Callaway as chief financial officer, and Tommy Greer as chief commercial officer. Mr. Callaway was vice president of growth initiatives at energy company AES Corp., and Mr. Greer was head of origination for North America at wind energy producer EDP Renewables.
Capital Dynamics and Arevon have entered into a services agreement under which Arevon will provide financing services and transaction services to Capital Dynamics' U.S. clean energy infrastructure portfolio, the Capital Dynamics' spokesman said. Arevon will continue providing asset management services to Capital Dynamics' U.S. clean energy infrastructure projects under existing service agreements.
Capital Dynamics' global clean energy infrastructure business will be co-led by Simon Eaves, senior managing director; Barney Coles, managing director; and Dario Bertagna, managing director.
Arevon has contracts to service $13 billion of operational clean energy assets. Terms of the deal were not disclosed. The transaction is expected to close by early 2022.