Because many strategic power developers over-expanded and as a result became over-leveraged, many power projects have been offered for sale in Latin America. As discrete investments, acquisition properties are attractive because they do not require development or present construction risks. Most of the time, however, these asset sales involve competitive processes.

Conduit has been successful in the acquisitions arena given a willingness to perform greater due diligence in making transactions more tax efficient and applying complex financial structuring. This requires less Project Finance capability needed for Greenfield project development and greater M&A savvy. Acquisition investments are important components of our funds for several reasons:

Project Benefits

  • Completed electrical power plants eliminates project construction risk and mitigates fuel risks
  • Ensures portfolio diversification
  • Acquisition of assets lead to new sources for Greenfield projects

Typical Acquisition Project Profile:

Purchase Price: $20MM-$200MM
Ownership Share Purchased: 51%-90%
Sellers: Foreign Strategic Investor
Co-owners: Local Partners
Debt Assumed: 60%-80%
Plant Capacity: 50MW-500MW
Fuel: Natural Gas
Power Purchasers: Local Utility Under Contract