Victory Capital to buy renewables infrastructure investor NEC

Global asset manager Victory Capital Holdings Inc (NASDAQ:VCTR) has agreed to take over New Energy Capital Partners (NEC), which invests in renewable energy infrastructure.

Victory Capital said in a statement that it will use NEC as its 11th Investment Franchise and the first one that focuses exclusively on alternative investments.

Based in Hanover, New Hampshire, NEC operates as an alternative asset management firm that makes debt and equity investments across the capital structures of small-and mid-sized clean energy infrastructure projects and companies. The technologies it supports include solar, wind, energy storage, energy efficiency, hydroelectric and other renewables, according to information on its website.

“With four active private closed-end funds, NEC is invested across both debt and equity instruments and has a diverse investor base of limited partners representing a mix of institutional investors including endowments, foundations, insurance companies, pension plans, health systems, government entities and family offices. With a broadly diversified portfolio of projects, spanning multiple energy markets and geographic jurisdictions, NEC generates returns that are uncorrelated with commodity exposure and traditional energy investments,” said David Brown, chairman and CEO of Victory Capital, adding that NEC’s investment process will not be changed.

The takeover is planned to close in the final quarter of the year. It is expected to immediately build on Victory Capital’s earnings, the buyer noted.

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