GCM Grosvenor’s Infrastructure Advantage Strategy Acquires Equity Interest in Brookfield’s Shepherds Flat

Rhea-AI Summary

GCM Grosvenor's Infrastructure Advantage Strategy has acquired a 25% equity interest in Shepherds Flat, North America's largest repowered wind farm, from Brookfield Asset Management and its partners. Shepherds Flat, located in Oregon, is a fully contracted 338-turbine wind farm with a nameplate capacity of 845 MW, producing over 2,000 GWh of electricity annually. The wind farm can power approximately 185,000 average U.S. households and is supported by a long-term utility contract.

Brookfield Renewable acquired Shepherds Flat in 2021 and performed a comprehensive repowering, increasing generation capacity and extending its lifespan. As part of the transaction, a Responsible Contractor Policy has been adopted for material construction work at the site. GCM Grosvenor views this as an opportunity to invest in a high-quality, sustainable infrastructure asset alongside an experienced operator in the Pacific Northwest energy market.

Positive

• Acquisition of a 25% equity stake in North America's largest repowered wind farm
• Investment in a fully contracted renewable energy asset with 845 MW capacity
• Long-term utility contract supporting the wind farm's operations
• Partnership with experienced operator Brookfield Renewable
• Adoption of Responsible Contractor Policy for future construction work

Negative

• None.

Insights

Financial Analyst

GCM Grosvenor's acquisition of a 25% stake in Shepherds Flat wind farm is a significant move that strengthens its position in the renewable energy sector. This 845 MW facility, the largest repowered wind farm in North America, represents a substantial asset with long-term value potential.

Key points to consider:

• The wind farm's annual production of over 2,000 GWh demonstrates its scale and efficiency.
• A long-term contract with a large-scale utility provides stable, predictable cash flows.
• The recent repowering has increased generation capacity and extended the asset's lifespan, enhancing its long-term value proposition.
• The adoption of a Responsible Contractor Policy aligns with ESG considerations, potentially attracting socially conscious investors.

While the financial terms weren't disclosed, this strategic acquisition likely provides GCM Grosvenor with a steady income stream and exposure to the growing renewable energy market. For investors, this move signals the company's commitment to expanding its infrastructure portfolio with high-quality, sustainable assets.

Renewable Energy Expert

The acquisition of a stake in Shepherds Flat is a shrewd move by GCM Grosvenor, tapping into the burgeoning renewable energy market. This wind farm's impressive 845 MW nameplate capacity places it among the largest in North America, offering significant scale advantages.

The recent repowering is a important aspect to consider. It not only boosted generation capacity but also extended the asset's operational life, potentially providing decades of reliable energy production. This enhancement aligns with the industry trend of optimizing existing wind farms to improve efficiency and longevity.

The Pacific Northwest location is strategic, given the region's favorable wind conditions and growing demand for clean energy. With the capacity to power approximately 185,000 average U.S. households, Shepherds Flat contributes substantially to the area's renewable energy mix, positioning GCM Grosvenor well in the evolving energy landscape.

CHICAGO, Sept. 24, 2024 (GLOBE NEWSWIRE) -- GCM Grosvenor (NASDAQ: GCMG), a leading global alternative asset management firm, today announced that its Infrastructure Advantage Strategy has acquired a 25% equity interest in Shepherds Flat (the “Transaction”), the largest repowered wind farm in North America, from Brookfield Asset Management (NYSE: BAM, TSX: BAM) and its institutional partners, including its listed affiliate Brookfield Renewable (NYSE: BEP, BEPC; TSX: BEP.UN, BEPC) (“Brookfield”).

Shepherds Flat, located in north central Oregon, is a fully contracted 338-turbine wind farm with a nameplate capacity of 845 MW. The wind farm produces in excess of 2,000 GWh of electricity annually, which is enough to power ~185,000 average U.S. households and is fully supported by a long-term contract with a large-scale utility.

"We believe Shepherds Flat presents a rare opportunity to invest in a high-quality, hard-to-replicate, sustainable infrastructure asset alongside an experienced owner, operator, and developer of clean power," said GCM Grosvenor Managing Director Matt Rinklin. "The Infrastructure Advantage Strategy is pleased to invest in contracted renewable power generation in the Pacific Northwest energy market. We are confident we can deliver long-term value to our investors through this strategic acquisition."

Brookfield Renewable, a global platform for renewable power and decarbonization solutions, acquired Shepherds Flat in 2021. A comprehensive repowering which materially increased the wind farm’s generation capacity was performed under Brookfield Renewable’s ownership, enhancing the plant’s operational efficiency and substantially extending its lifespan.

“We are excited to partner with GCM Grosvenor while maintaining exposure to this high-quality asset that provides essential clean energy to customers throughout the Pacific Northwest. We continue to see opportunities to further enhance value at Shepherds Flat and are thrilled to be working with GCM,” said Jeh Vevaina, Managing Partner, Brookfield Asset Management.

GCM Grosvenor’s investment in Shepherds Flat was completed through its Infrastructure Advantage Strategy, which seeks to generate high-quality risk adjusted returns through alignment with key stakeholders, including union labor. As part of the transaction, the Shepherds Flat partnership has adopted a Responsible Contractor Policy which will apply to any material construction work at the site.

Thorndike Landing LLC acted as financial advisor and Kirkland & Ellis LLP acted as legal advisor on the transaction for GCM Grosvenor. BMO and Wells Fargo acted as financial advisor and King & Spalding LLP acted as legal advisor on the transaction for Brookfield.

About GCM Grosvenor

GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately $79 billion in assets under management across private equity, infrastructure, real estate, credit, and absolute return investment strategies. The firm has specialized in alternatives for more than 50 years and is dedicated to delivering value for clients by leveraging its cross-asset class and flexible investment platform. GCM Grosvenor’s experienced team of approximately 540 professionals serves a global client base of institutional and individual investors. The firm is headquartered in Chicago, with offices in New York, Toronto, London, Frankfurt, Tokyo, Hong Kong, Seoul and Sydney. For more information, visit: gcmgrosvenor.com.

About Brookfield Asset Management

Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager with approximately $1 trillion of assets under management. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors.

Brookfield operates Brookfield Renewable Partners (NYSE: BEP, TSX: BEP), one of the world’s largest publicly traded platforms for renewable power and sustainable solutions. Our renewable power portfolio totals over 34,000 megawatts and our development pipeline stands at approximately 200,000 megawatts. Our portfolio of sustainable solutions assets includes our investments in Westinghouse (a leading global nuclear services business) and a utility and independent power producer with operations in the Caribbean and Latin America, as well as both operating assets and a development pipeline of carbon capture and storage capacity, agricultural renewable natural gas and materials recycling.

Media Contacts:

GCM Grosvenor
Tom Johnson and Abigail Ruck
H/Advisors Abernathy on behalf of GCM Grosvenor
tom.johnson@h-advisors.global / abigail.ruck@h-advisors.global
212-371-5999

Brookfield

Simon Maine
Managing Director – Communications
+44 (0)7398 909 278
simon.maine@brookfield.com

FAQ

What percentage of Shepherds Flat wind farm did GCM Grosvenor (GCMG) acquire?

GCM Grosvenor's Infrastructure Advantage Strategy acquired a 25% equity interest in Shepherds Flat wind farm.

What is the nameplate capacity of Shepherds Flat wind farm acquired by GCM Grosvenor (GCMG)?

Shepherds Flat wind farm has a nameplate capacity of 845 MW.

How much electricity does Shepherds Flat wind farm produce annually?

Shepherds Flat wind farm produces in excess of 2,000 GWh of electricity annually.

When did Brookfield Renewable acquire Shepherds Flat wind farm before selling to GCM Grosvenor (GCMG)?

Brookfield Renewable acquired Shepherds Flat wind farm in 2021.

What policy did GCM Grosvenor (GCMG) implement as part of the Shepherds Flat acquisition?

As part of the transaction, a Responsible Contractor Policy was adopted for any material construction work at the Shepherds Flat site.