On Thursday, ECP, one of the largest owners of renewable energy infrastructure assets in the U.S., announced that it has established a strategic partnership with Hana Financial Investment, a subsidiary of Hana Financial Group, South Korea‘s fourth-largest banking group by assets. The two firms are launching a joint platform that will target up to $300 million in infrastructure credit investments in North America, Europe and other OECD countries.
The parties aim to achieve attractive risk-adjusted returns and strong downside protection through credit investments across ECP’s key areas of infrastructure expertise, including power generation, renewables, energy storage, environmental infrastructure, and efficiency and reliability assets. The mandate includes the ability to invest across various debt structures including senior, subordinated, and uni-tranche opportunities.
“ECP is very excited about this partnership, and we look forward to leveraging our industry relationships and institutional knowledge to source, underwrite, and execute on attractive debt opportunities. This partnership will allow us to support a wider range of borrowers across the return spectrum,” said Mahmud Riffat, Principal and Co-Head of Credit at ECP.
ECP has operated its credit platform in 2012. Since that time, ECP’s portfolio companies have issued over $31 billion of debt capital across various markets including commercial bank loans, syndicated term loans, high yield bonds, asset-backed structures, and private credit transactions.
Last month, ECP announced the successful completion of its first Continuation Fund with $1.2 billion in capital commitments, and successfully exited its remaining stake in Terra-Gen, a leading renewable energy developer and operator that ECP had owned since 2015. Terra-Gen currently operates more than 1,600 MW of facilities and has more than 3,000 MW of projects under advanced development, including the Edwards Sanborn solar + storage project, the largest project of its kind in North America.
Also last month, ECP announced that it would buy Liberty Tire Recycling, a leading provider of tire recycling services in North America, from Carlyle Group, which has been the company’s majority owners since 2017.
