Darby exits São Paulo infrastructure deal

Darby Private Equity has exited its investment in Bioenergy Geradora de Energia, a renewable energy company based in São Paulo, Brazil.

The firm invested R$58 million (US$30 million) in Bioenergy Geradora de Energia through its Brazil Mezzanine Infrastructure Fund, according to a 2011 press release. The fund invests in mid-sized infrastructure assets in Brazil.

The investment helped fund wind parks included in Bioenergy Geradora de Energia’s portfolio of 1,500 MW of renewable energy.

“We backed an excellent company and take great pride in our partnership with Bioenergy as well as in the role we played in strengthening the company’s financial position.  We congratulate the management team for their accomplishments and continue to believe they are one of the best renewable energy companies in the country,” said Managing Director Eduardo Farhat in a statement. “Moreover, this investment highlights Darby’s dedication to Brazil as well as to the energy infrastructure asset class.”

“Two operating wind parks were sold to a strategic investor which triggered a liquidity event and the consequent exit of Darby's position,” Darby spokesperson Heather Jensen told Private Debt Investor. The exit provided the fund with an internal rate of return in the “high-twenties range”, she added. 

Darby was founded in 1994. The firm, a subsidiary of Franklin Templeton Investments, provides expansionary investment capital to mid-sized companies.