ESG Archives - DIF Capital Partners

5 March 2024 | Schiphol

DIF Capital Partners raises EUR 6.8 billion for its latest infrastructure funds

The successful fund raisings for DIF VII and CIF III represent a 50% increase compared to the prior funds.

DIF Capital Partners (DIF), a leading global infrastructure fund manager, is pleased to announce it has raised EUR 6.8 billion for its latest infrastructure funds with final closes across DIF Infrastructure VII (DIF VII) EUR 4.4 billion, DIF Core-Plus Infrastructure Fund III (CIF III) EUR 1.6 billion, and certain Co-investment vehicles EUR 0.8 billion.

DIF experienced strong investor demand from both existing and new institutional investors across the globe, enabling both DIF VII and CIF III to exceed their target fund sizes of EUR 4.0 billion and EUR 1.5 billion respectively. Total commitments for the predecessor funds (DIF VI and CIF II) equaled EUR 3.0 billion and EUR 1.0 billion.

DIF VII targets infrastructure investments, often concession-based or with long-term offtake agreements offering stable and predictable cash flows as well as attractive risk-adjusted returns. Sectors covered are transportation, (renewable) energy, digital infrastructure as well as utilities.

CIF III targets investment opportunities with strong growth potential. It focuses on a broad range of infrastructure sectors including digital infrastructure (specifically datacenters and fibre), energy transition as well as sustainable transportation.

Both fund strategies target a mix of operational and greenfield investments and predominantly focus on Europe and North America.

The funds received commitments from a diverse institutional investor base of more than 110 investors across Europe, the Americas, Asia, and the Middle East, including public and private pension plans, sovereign wealth funds, insurance companies, financial institutions, foundations, and private wealth investors.

Wim Blaasse, CEO at DIF Capital Partners, said: “We are extremely grateful to our investors for their trust and support, and this successful fundraising reinforces DIF’s leading position in the infrastructure market.

In addition, we are excited by the journey ahead as we team up with CVC, and accelerate the growth of our investment capabilities, our geographic reach, and lever the CVC network”.

Gijs Voskuyl, Deputy CEO at DIF Capital Partners, said: “An ever growing demand for infrastructure capital provides an exciting investment opportunity for us, and with our investment track record and experienced teams on the ground across our network of offices in eleven countries, we are confident we can use this capital to take advantage of attractive investment opportunities.”

To date, both funds have invested or committed to nine investments each, thereby deploying around 50% of total commitments. For DIF VII this includes investments in Saur, a global water solutions provider, Fjord1, a Norwegian electric ferry concessions operator and Green Street Power Partners, a US distributed solar developer/IPP. For CIF III this includes investments in metrofibre, a German urban fibre roll-out platform, Tonaquint, a US datacenter platform and Rail First, an Australian rail leasing business.

About DIF Capital Partners

DIF Capital Partners is an infrastructure fund manager with more than EUR 17 billion of assets under management. DIF was founded in 2005 and has a leading position in managing mid-market investments, primarily in Europe and North America.

DIF follows two strategies: its traditional DIF funds invest in infrastructure projects and companies in the energy transition (incl. renewables) and utilities sector, as well as concessions. The firm’s CIF funds invest in companies with strong growth potential that are active in infrastructure sectors such as digital infrastructure, energy transition and sustainable transportation.

With a team of over 240 professionals in 11 offices, DIF offers a unique market approach combining global presence with the benefits of strong local networks and investment capabilities. DIF is located in Amsterdam, Frankfurt, Helsinki, London, Luxembourg, Madrid, New York, Paris, Santiago, Sydney and Toronto.

In September 2023, CVC, a leading global private markets manager, announced that it would be acquiring a majority stake in DIF Capital Partners. Closing of the transaction is subject to regulatory approvals and is expected in Q2 2024.

For more information, please visit www.dif.eu or follow us on LinkedIn.

Press contact:

DIF Capital Partners: press@dif.eu

DIF Capital Partners raises EUR 6.8 billion

21 November 2023 | Schiphol

DIF Capital Partners to acquire a majority interest in Novar, leading Dutch developer of green energy systems

DIF Capital Partners (via its DIF Infrastructure VI fund) has signed an agreement to acquire 60% of Novar, the leading developer of large-scale sustainable energy systems in the Netherlands.

The transaction marks the start of a long-term collaboration to deliver sustainable and innovative renewable energy solutions. As part of the investment, DIF will provide growth capital to among others support the expansion of Novar’s utility-scale solar, rooftop solar and Battery Energy Storage Systems (BESS) portfolio.

Headquartered in Groningen, Novar owns and operates 440MW of utility-scale solar PV, rooftop solar and BESS projects. It has a development project pipeline of more than 15GW. Novar is a front-runner in integrated energy solutions, currently developing the largest private grid project in the Netherlands, which will provide grid connection for several of its large-scale solar and BESS projects, as well as the first Dutch solar thermal and green hydrogen projects.

The company operates a fully integrated Independent Power Producer model, providing operation & maintenance, technical & commercial asset management and consultancy & flex services to its own portfolio and to third parties.

Gijs Voskuyl, Partner at DIF, said: “The investment in Novar presents an opportunity for DIF to support the Dutch solar energy market leader with a long track record of successfully delivering ground-mounted and rooftop projects. Its existing 440MW contracted portfolio offers a robust investment proposition and with the extensive pipeline in solar and storage projects, we can continue to invest in energy transition investment opportunities going forward. We’re looking forward to working with Novar’s management team to continue to jointly grow the company in the years ahead.”

Gerben Smit, CEO of Novar Holding, expressed his enthusiasm, stating, “Thanks to this strategic partnership, Novar has the opportunity to shape further growth, expand internationally and achieve the target of 4GW of operating capacity by 2030.”

DIF was advised by KPMG (financial advisor), McKinsey (commercial advisor), Arup (technical advisor) and NautaDutilh (legal advisor). Novar was advised by Voltiq (financial advisor), Eversheds Sutherland and Hogan Lovells (legal advisors).

The transaction is subject to regulatory and other approvals and is expected to close in the fourth quarter of 2023.

About Novar Holding:

Novar Holding, formerly Solarfields, was founded in 2014 and specializes in the development of large-scale sustainable energy systems. For more information, please visit www.novar.nl.

About DIF Capital Partners

DIF Capital Partners is an infrastructure fund manager with ca. EUR 16 billion of assets under management. DIF was founded in 2005 and has a leading position in managing mid-market investments, primarily in Europe, North America and Australia.

DIF follows two strategies: its traditional DIF funds invest in lower-risk mid-sized infrastructure projects and companies in the energy transition (incl. renewables) and utilities sector, as well as PPPs and concessions. The firm’s CIF funds invest in small to mid-sized companies that will thrive in the new economy. These companies are typically active in the digital infrastructure, energy transition and sustainable transportation sector.

With a team of over 225 professionals in 11 offices, DIF offers a unique market approach combining global presence with the benefits of strong local networks and investment capabilities. DIF is located in Amsterdam, Frankfurt, Helsinki, London, Luxembourg, Madrid, New York, Paris, Santiago, Sydney and Toronto.

For more information, please visit www.dif.eu or follow us on LinkedIn.

Press contacts:

DIF Capital Partners: press@dif.eu

Novar: David de Jong, david.dejong@novar.nl, +31 6 27971111

19 October 2023 | Schiphol

DIF Capital Partners appoints new Head of ESG

DIF Capital Partners (DIF) is pleased to announce that it has appointed Lorraine Becker as its new Head of ESG.

Lorraine joins DIF, having served as its interim Head of ESG for the last six months. Previously, she was a Principal Consultant for the world’s largest pure sustainability consulting firm, ERM (Environmental Resources Management) in Calgary, Canada.

At ERM, Lorraine served leading financial services clients, including private equity and pension funds, in developing and implementing best-in-class ESG policies. Lorraine’s previous career includes roles in environmental consulting and corporate sustainability for major businesses in the energy sector both North America and Europe.

DIF has an ongoing commitment to being a responsible investor, as a signatory to the United Nations Principles of Responsible Investment (UNPRI). In addition, DIF recognises the importance of the goal of Net Zero greenhouse gas emissions by 2050, or sooner, in line with global efforts on climate change as a result of the Paris Agreement. It is also a signatory to the Net Zero Asset Managers (NZAM) initiative.

Lorraine Becker comments: “Over the coming years, DIF will have an ongoing commitment to being a responsible investor. I’m thrilled to be part of that. It’s exciting to work for a business with a track record of embedding ESG into its business.”

Wim Blaasse, Managing Partner at DIF said: “We’re delighted to welcome Lorraine to DIF permanently. She has already made a major contribution to the business over the last six months. We look forward to her continuing to help drive DIF’s commitment to delivering a positive contribution to a sustainable future.”

About DIF Capital Partners

DIF Capital Partners is an infrastructure fund manager with ca. EUR 16 billion of assets under management. DIF was founded in 2005 and has a leading position in managing mid-market investments, primarily in Europe, North America and Australia.

DIF follows two strategies: its traditional DIF funds invest in lower-risk mid-sized infrastructure projects and companies in the energy transition (incl. renewables) and utilities sector, as well as PPPs and concessions. The firm’s CIF funds invest in small to mid-sized companies that will thrive in the new economy. These companies are typically active in the digital infrastructure, energy transition and sustainable transportation sector.

With a team of over 225 professionals in 11 offices, DIF offers a unique market approach combining global presence with the benefits of strong local networks and investment capabilities. DIF is located in Amsterdam, Frankfurt, Helsinki, London, Luxembourg, Madrid, New York, Paris, Santiago, Sydney and Toronto.

For more information, please visit www.dif.eu or follow us on LinkedIn.

Contact DIF Capital Partners: press@dif.eu

12 October 2023 | Schiphol

DIF Capital Partners closes credit facility with innovative ESG performance criteria

DIF Capital Partners (“DIF”) is pleased to announce that it has successfully extended its EUR 1.2 billion credit facility with its main group of lenders for another year until September 2024. As part of this deal, ESG-linked performance criteria have been added to the loan agreement.

The credit facility was closed by the DIF Infrastructure VII fund and is provided by a club of banks including ABN AMRO, BMO, BNP Paribas, HSBC, ING, National Bank of Canada, Rabobank and Santander CIB. ING Bank acted as Sustainability Coordinator.

The loan agreement has been amended to include KPIs for ESG performance, relating both to DIF as a manager and to the ESG performance improvement of the underlying portfolio.

The inclusion of these ESG KPIs in the credit agreement underlines DIF’s desire to positively contribute to a sustainable future. In return, the DIF Infrastructure VII fund benefits from a reduction in margin on the facility upon meeting those KPIs. If the fund does not meet these goals, it will pay a margin premium. This arrangement reflects the lenders’ own ESG positions and commitment to a sustainable future.

“We are delighted to again be working with our long-term lending partners on this innovative credit facility, featuring clear ESG KPIs. The close of this agreement confirms our commitment to delivering a positive contribution to a sustainable future,” said Gijs Voskuyl, Partner and Deputy CEO at DIF.

About DIF Capital Partners

DIF Capital Partners is an infrastructure fund manager with ca. EUR 16 billion of assets under management. DIF was founded in 2005 and has a leading position in managing mid-market investments, primarily in Europe, North America and Australia.

DIF follows two strategies: its traditional DIF funds invest in lower-risk mid-sized infrastructure projects and companies in the energy transition (incl. renewables) and utilities sector, as well as PPPs and concessions. The firm’s CIF funds invest in small to mid-sized companies that will thrive in the new economy. These companies are typically active in the digital infrastructure, energy transition and sustainable transportation sector.

With a team of over 225 professionals in 11 offices, DIF offers a unique market approach combining global presence with the benefits of strong local networks and investment capabilities. DIF is located in Amsterdam, Frankfurt, Helsinki, London, Luxembourg, Madrid, New York, Paris, Santiago, Sydney and Toronto.

For more information, please visit www.dif.eu or follow us on LinkedIn.

Contact DIF Capital Partners: press@dif.eu

15 June 2023 | London

DIF Capital Partners achieves financial close on 540MW co-location solar and battery portfolio

DIF Capital Partners (via its DIF Infrastructure VII fund) is pleased to announce that it has reached a close on financing co-located solar generation and battery storage portfolio in the UK.

DIF, together with 10% co-shareholder ib vogt, acquired the portfolio in November 2022. The portfolio consists of seven ready-to-build sites with a total capacity of 720MW (380MW solar and 340MW Battery Energy Storage Systems (BESS).

The financing structure covers the first 540MW of projects in the portfolio and comprises of fully committed senior debt facilities. It also includes an equity bridge loan provided by a club of senior lenders comprising ABN AMRO, ING, Rabobank, NAB, KFW and Lloyds, with Lloyds acting as agent. There is a further uncommitted accordion facility to expand the financing for the final 180MW of projects in the portfolio.

DIF is also pleased to announce significant progress on the commercialisation of the portfolio since acquisition. The first two projects in the portfolio have commenced construction, with an expectation that all projects will be operational between 2024 and 2025.

Gijs Voskuyl, Partner and Head of Infrastructure at DIF Capital Partners, said: “We are delighted to announce this major milestone in the commercialization of a landmark UK solar and battery portfolio. These assets will play a significant role in the UK’s energy transition.

We’re particularly happy to have secured an innovative, market leading portfolio financing agreement – the first of its kind for such a portfolio in the UK.

DIF is grateful to the strong club of lenders supporting the portfolio, many of whom represent key relationships for DIF. We look forward to bringing this landmark portfolio into operation and make a significant contribution to the UK’s efforts to achieve net zero by 2050.”

DIF was advised by Elgar Middleton, Lazard, CMS, DNV and Natural Power.

About DIF Capital Partners

DIF Capital Partners is an independent infrastructure fund manager, with ca. EUR 16 billion of AUM. DIF was founded in 2005 and has built a leading position in managing mid-market investments, primarily in Europe, North America and Australia.

DIF follows two strategies: its traditional DIF funds invest in lower risk mid-sized infrastructure projects and companies in the energy transition (incl. renewables) and utilities sector, as well as PPPs and concessions. The firm’s CIF funds invest in small to mid-sized companies that will thrive in the new economy. These companies are typically active in the digital, energy transition and sustainable transportation sector.

With a team of over 225 professionals in 11 offices, DIF Capital Partners offers a unique market approach combining global presence with the benefits of strong local networks and investment capabilities. DIF is located in Amsterdam (Schiphol), Frankfurt, Helsinki, London, Luxembourg, Madrid, New York, Paris, Santiago, Sydney and Toronto.

For more information, please visit www.dif.eu

Contact DIF Capital Partners: press@dif.eu

13 December 2022 | Schiphol

Infrastructure investors must see the wood for the trees when it comes to ESG impact | blog

There is no doubt that the environmental, social and governance (ESG) impacts of infrastructure investments are of increasing interest to regulators, investors and civil society. That is good news, but it’s also important this impact is understood in a holistic way, telling the full story of the infrastructure project we fund.

Currently, much of the debate with LPs on ESG impact is focused on managing and minimising the adverse impacts that all infrastructure projects have. New rules such as the EU’s Sustainable Finance Disclosure Regulations (SFDR), rightly, demand transparency and accountability in areas such as reducing emissions, improving health and safety or decreasing biodiversity loss.

That is much needed, but focusing on the minimisation of harm also risks failing to see the wood for the trees.

Intrinsic benefits

For those who work in our sector the connection between infrastructure investment, economic growth and societal benefits is very clear.

The hospital and school investments we make improve health and enrich education. Fiber networks get thousands online to close the digital divide. Clean energy assets are laying the foundations for the low-carbon economy and roadbuilding enables millions of drivers to travel more quickly, safely and efficiently.

Across the world, infrastructure is helping in achieve the challenges of the UN Sustainable Development Goals (SDGs).

So just as we should not solely use a traditional cost/benefit analysis to narrowly focus on just the financial viability of an asset; we should not use ESG analysis to solely focus on reducing harm. That risks overlooking the wider inherent benefits our sector creates.

Measuring positive outcomes

To address this challenge and showcase promising practices my firm, DIF Capital Partners, has worked with specialist sustainability consultants to develop an ‘Intrinsic Benefits Tool’.

The aim of the tool is to provide both a sector- and country-level analysis for each sector we invest in that identifies the intrinsic benefits an investment might provide.

It is based on impact metrics developed by UNEP-FI and its scores measure both positive and negative impacts that can be linked back to the SDGs. It also considers each country’s specific needs or issues. A school investment in a country lacking teaching capabilities, for instance, would score higher than a similar investment in a country with abundant education facilities.

For example, we used the tool when considering our investment in Airtower, a US wireless company providing the next generation wifi networks. It helped show how these networks enable first responders such as ambulance drivers to deal with emergencies, contributing to SDG 3 (Good Health & Well-being), build smart, sustainable cities (SDG 11) and use cloud migration to reduce the need for emissions-intensive local servers (SDG 13).

It provided a similar role for our investment in Greener, a market leader in mobile battery solutions in the Netherlands, showing that Greener contributes positively to SDG 9 (Industry, innovation, and infrastructure), SDG 11 (Sustainable cities and communities), and SDG 13 (Climate action) by supplying clean energy and mitigating the impacts of climate change.

The tool is part of a holistic attempt to understand ESG risks and opportunities in our investment process which also includes a screening mechanism during pre-investment, and active monitoring and management of an investee’s potential negative impacts throughout our ownership.

A brighter infrastructure investing picture

We live in a world where megatrends such as digitisation, energy transition, urbanisation and consumption continue to foster demand for infrastructure investing. But it is also a world where projects must continuously report on their environmental and social impacts, and show they align with public policy goals such as the SDGs.

As the sector beds in systems and standards to allow that to happen we must strike an appropriate balance between how we are generating and reporting financial returns, the action we are taking to minimize negative impacts, but also the wider long-term public benefits that are being delivered by our hospitals, schools, networks and other infrastructure too.

Frank Siblesz is Head of ESG at DIF Capital Partners