Fund Manager Closes Debut Investment With Initial A$70 Million Australian Renewables Deal

Patrizia MBK Fund Management, a joint venture between German asset manager Patrizia and Japan’s Mitsui & Co, has completed the first investment for the APAC Sustainable Infrastructure Fund (A-SIF).

Its Initial investment of A$70 million comprises an equity stake in Australian renewable energy services company YES Group as well as the funding of a diversified solar and battery energy storage development portfolio across regional Australia.

The investment has the potential to deliver a total renewable generation capacity of over 150MW once fully developed, supporting Australia’s transition to green energy.

With a target size of up to US$1 billion in assets under management, A-SIF is investing in the energy, digital, social, and mobility sectors across key developed markets in the Asia Pacific region.

Patrizia MBK said the latest development locations in rural Australia will help unlock value in under-utilised or redundant land for the community and generate local and skilled employment opportunities throughout a circa 30-year lifecycle.

The investment in batteries, both integrated with solar as well as standalone, will provide additional support for the grid during Australia’s period of energy transition.

Founded over 15 years ago, YES Group is a licenced, vertically integrated energy solutions provider, covering energy markets services and retailing, project origination and EPC, high voltage services and asset management.

The company has successfully installed over 1,700 rooftop solar systems (sub 1MW), and over 120 ground-mount solar farms (sub 5MW) and works on major infrastructure projects across the national electricity network. Patrizia and YES Group have worked together since September 2020, delivering over 60MW of approved projects with a further pipeline of over 70MW identified, in addition to the target of over 150MW through A-SIF.

Saji Anantakrishnan, Head of Infrastructure for Australia and Asia at Patrizia, said: “As a thoughtful and strategic investor for our clients, this first deal for A-SIF demonstrates our strong conviction to energy transition and the attractive long-term returns renewables can generate for our institutional investors. Our vision in APAC for both Patrizia’s real assets platform and our flagship mid-market fund is to collaborate with like-minded investors and regional partners to build a portfolio of infrastructure assets that deliver positive sustainable outcomes.”

A-SIF is the second fund from the Patrizia-Mitsui collaboration, following the launch of the Emerging Market Infrastructure Fund (EMIF) in 2008, which also had a focus on APAC.