Multimanager boutique firm Victory Capital Management will acquire New Energy Capital Partners, the company's first purchase of an alternative investment manager, in a deal expected to close in the fourth quarter.
Victory will pay $65 million at closing to acquire all of New Energy Capital Partners, which focuses on debt and equity investments in clean energy infrastructure projects and companies.
Additional payments based on revenue growth may be made to New Energy Capital employees over a six-year period, according to a Victory investor presentation obtained by Pensions & Investments.
New Energy Capital will continue to operate independently under its own name and no changes are planned regarding the firm's investment process or team, said Tricia Ross, a Victory Capital spokeswoman, in an email.
New Energy Capital manages four private closed-end funds in multiple energy markets and geographies primarily for institutional investors. The firm has been involved in transactions totaling about $3 billion in total asset value, Victory Capital's news release said. The assets under management total was not provided.
New Energy Capital Partners will be Victory Capital's 11th affiliate manager.
"Launching an alternative investment platform creates an additional path for future growth," said David Brown, chairman and CEO of Victory Capital, in a news release, adding "NEC perfectly embodies all of the characteristics we seek, and we particularly like their specialization in clean and renewable energy, which is a fast-growing market segment."
"Technology advancements have led to material declines in production costs and the industry's economics have now reached a tipping point," said Scott S. Brown, NEC's CEO, in the release.
"This, coupled with increasing attention on climate change and rapidly evolving government standards bodes well for solar, wind and hydro technologies to increase their representative shares of the growing electrical generation market," Mr. Brown said.
Victory Capital managed $162.9 billion as of July 31.