It’s hard not to see the downsizing of Terra Firma’s much-vaunted renewable energy infrastructure fund as a capitulation to the realities of today’s renewables market.
When the Guy Hands-led private equity firm started marketing the fund two years ago, it presented it as a $2 billion vehicle targeting 15 percent returns from investments in OECD-based renewable assets that, shall we say, needed work. Not distressed assets – just stressed, was the message coming from Terra Firma.
Yet Terra Firma is a bona-fide clean energy heavyweight, with 1.7GW of assets and a star investment in Infinis. If there’s a sector where it should be able to raise money, clean energy is it.