Warburg Pincus, the US-based private equity investor, has committed $100m to Insight Energy, a US company that is planning to make small to medium size power plant acquisitions of between $10m and $100m in North America and Western Europe.
Insight Energy’s management have also committed funds to the business, which plans to acquire and develop power generation assets under 150 megawatts (MW) in capacity primarily in the US, Canada, Ireland and the UK.
Insight is targeting power plants that have achieved predictable revenues from long-term contracts for selling power. The firm will look to leverage its equity with $200m-300m in debt, enabling Insight to complete around 30 transactions.
Insight Energy’s management team includes four senior management figures from Rolls-Royce Power Ventures, including former COO Kevin Smith. The management team has so far acquired or developed more than 50 power facilities to date, most of which were cogeneration and power projects.
The investment in Insight is the first made by Warburg Pincus in the energy sector since it closed its $5.3bn WP VIII fund in April.