Private markets investment manager CVC’s infrastructure strategy CVC DIF announced the acquisition of a majority controlling stake in European renewable energy company Low Carbon, in a deal securing more than $1.4 billion in capital for Low Carbon aimed at creating a leading, pan-European Independent Power Producer (IPP).

Founded in 2011, London-based Low Carbon develops, builds, and operates utility-scale solar, onshore wind, and battery storage projects across the UK and Europe. The company currently has 1 GW of operational and in-construction assets, and a 16 GW development pipeline.

According to the company’s the new investment comes as the UK and Europe are poised to invest significantly in clean energy over the next several years, with the UK’s Clean Power 2030 plan calling for doubling onshore wind capacity and tripling solar PV, requiring around £40 billion in annual investment, while the EU has also set a 42.5% renewable energy target.

Caine Bouwmeester, Partner and Head of Renewable Energy at CVC DIF, said:

“We are excited to partner with Low Carbon, a best-in-class renewable energy company which we have known well for more than a decade. This investment reflects our shared conviction in the critical role renewables will play in the energy transition. Low Carbon’s talented team, strong culture, and disciplined development strategy position it to lead the next phase of growth in the sector.”

Under the new agreement, CVC DIF will commit primary equity, both common and preferred, resulting in a majority controlling stake in Low Carbon. When combined with follow-on investment from existing shareholder MassMutual, the refinancing of existing project finance debt and raising of a Holdco facility, the investment will secure approximately £1.1 billion (USD$1.45 billion) of committed capital for Low Carbon.

The company said that the new capital will help Low Carbon to grow its presence across core markets including the UK, Germany, and Poland, where it aims to bring a 3 GW portfolio of operational utility-scale renewable energy projects in the coming years.

Roy Bedlow, Founder and CEO of Low Carbon, said:

“I would like to thank CVC DIF and their investors for the confidence they have placed in Low Carbon and our ability to develop, build and operate high-quality renewable assets in the UK and Europe. In addition, MassMutual’s continued investment in Low Carbon underlines our shared ambition of delivering long-term value across the full investment cycle of renewables that will help accelerate our goal to deploy renewable energy at scale to help tackle climate change.”

Low Carbon and MassMutual launched a strategic partnership in 2021, followed by a £400 million commitment by MassMutual in 2023 in Low Carbon to fund investments in large-scale renewable energy projects across the UK, Europe and U.S. The companies said that MassMutual will continue to support the growth of the business with additional investment and will work closely with CVC DIF to accelerate the build out of Low Carbon’s renewables pipeline.

Drew Dickey, Head of Alternative Investments at MassMutual, said:

 “Significant strides have been made since our original investment in Low Carbon to distinguish it as a top performing renewable energy company. We welcome the combination of capital and experience that CVC DIF brings to Low Carbon, which will provide important leadership to the buildout of our ambitious pipeline of renewable energy projects.”