The CVE Group reinforces Capital with the Entry of ICG Infra

CVE, a France-based independent producer of renewable energy, active in the solar, biogas, and hydropower markets, is announcing today that Intermediate Capital Group plc, a global alternative asset manager, has invested €100 million in equity and quasi equity in CVE through its infrastructure investment arm (ICG Infra). This deal will help ensure CVE’s long-term growth. The Group has set a goal for itself of increasing its production capacity eightfold by 2025, to a target of 2.3 GW in operation and under construction.

“We are very pleased with the success of this deal, which gives us additional resources to accelerate our development in competitive renewable energy markets, in France and abroad, and to capture the sector’s growth potential,” say Pierre de Froidefond, Hervé Lucas, and Christophe Caille, the founding partners of CVE, as well as Arnaud Réal del Sarte, the Deputy Chief Financial Officer. “This deal shows that our business model is solid, as is our strategy of being an independent, multi-energy, multi-country producer dedicated to decentralized renewable power generation sold through short supply chains to businesses and communities.”  

 Guillaume d’Engremont, head of European infrastructure at ICG, commented:

“This transaction is a perfect example of our sustainable approach to infrastructure investment, which prioritizes partnerships with leading industrial players. CVE is already playing a key role in its markets, and we are delighted to be a part of its future development.”  

Financing CVE’s growth and the diversification of its energy mix 

This deal gives CVE new resources to significantly reinforce its capital, finance its 2020-2025 business plan, and accelerate its investment outlays. 

By 2025, the Group plans to increase its installed capacity eightfold to 2.3 GW, more than 50% of which will be deployed outside France. Most will be added in the United States, Chile, and certain African countries where the Group is already present, as well as new regions currently under consideration. 

This operation will also help finance the diversification of CVE’s energy mix, particularly by accelerating its methanation business, which will account for nearly 25% of its revenue by 2025 (compared to 2% today), as well as the deployment of its hydropower business.   

This deal leaves CVE’s partners still in control of the company. By maintaining its independence, the Group, which hopes to invent the energy models of the future, is preserving its agility and its ability to innovate in both technical and marketing issues. As an example, CVE recently signed its first RespeeR contracts, its local green electricity solution for businesses and communities, launched the Halo community solar plan in the United States, is deploying bifacial solar projects in Chile and France, and is looking into floating solar as well.  

At the end of this deal, the employee shareholding scheme will be strengthened reflecting the commitment of the founding partners to share out benefits from growth with CVE’s teams over the long term.