ZUG, Switzerland, October 9, 2012 – Capital Dynamics, as the private asset manager for a leading UK pension fund, is pleased to announce the successful acquisition of a 26-megawatt (MW) portfolio of gas-fired power plants from UK Coal PLC. The portfolio consists of four sites located in North Yorkshire and the East Midlands that recover waste mine methane and convert it to electricity, which is sold under long-term sales contracts with both UK Coal and other major UK energy suppliers.
Capturing waste mine methane to produce electricity is an important step toward more sustainable energy production. Preventing methane – a 25-fold more potent greenhouse gas than CO2 – from escaping directly into the atmosphere helps reduce the emission of greenhouse gases resulting from coal mining. The assets acquired by Capital Dynamics are well-proven gas engine technology in widespread use throughout the industry.
The Capital Dynamics Clean Energy and Infrastructure (CEI) team previously established an innovative sole-investor ownership structure in conjunction with a specialist operations and maintenance entity to oversee the day-to-day management of a 64-MW UK landfill gas portfolio acquired in January 2012. The 26-MW coal mine methane portfolio acquisition increases the scale and diversification of the original investment and is a natural addition to this cash yield focused structure, allowing the achievement of operational synergies, reduced investment risk and increased cash flows. Capital Dynamics will manage these assets under a long-term agreement.
“The successful acquisition of this portfolio of methane-to-power assets is a testament to the CEI team’s accomplished sourcing and execution abilities,” said Rory Quinlan, Managing Director in Capital Dynamics’ CEI team. “It is another tangible example of our broad industry and operational experience, and ability to structure bespoke investments for our institutional clients.”
“We are pleased to have completed what has the potential to be another strong and long-term cash-yielding investment for our investment partner,” said Stefan Ammann, CEO of Capital Dynamics. “The transaction highlights the firm’s ability to provide our investment partners with opportunities that feature the capacity for regular and long-term cash generation.”
Capital Dynamics’ CEI team
Capital Dynamics’ CEI team collectively holds over 100 years of experience in investing, financing, owning and operating conventional and clean energy businesses globally. Established to capture attractive investment opportunities in this new class of real assets, Capital Dynamics’ CEI business mandate is to invest directly in proven clean energy technologies – such as solar, wind, biomass, geothermal, small hydro and landfill gas – across the globe. Since establishment of Capital Dynamics’ CEI business, the CEI team has successfully acquired, built and now manages more than 100 megawatts of clean energy capacity in North America and Europe.
Capital Dynamics is an independent asset management firm focusing on private assets including private equity, and clean energy and infrastructure. Capital Dynamics manages those investments through separate account solutions and a range of products including direct investment funds, funds of funds and structured private equity products.
Our senior investment professionals hold an average of over 20 years of investing experience and due dili-gence expertise, gained through diverse backgrounds as fund investors, direct investors, and co-investors. With 160 professionals and 10 offices worldwide, Capital Dynamics is able to deliver top-quality service to its client base of sophisticated institutional investors such as pension funds, endowments, family offices, high net worth individuals, and advisors. Headquartered in Switzerland, Capital Dynamics has offices in London, New York, Zurich/Zug, Tokyo, Hong Kong, Silicon Valley, Sao Paulo, Munich, Birmingham (UK), and Brisbane.
Capital Dynamics comprises Capital Dynamics Holding AG and its affiliates.