Quercus Renewable Energy Fund sells its stake in ForVEI

Written By: Stratton Report
January 16, 2017

Quercus

On January 16, Quercus Assets Selection announced that the Quercus Renewable Energy Fund had completed the sale of roughly 10% in ForVEI, a joint venture of Quercus Renewable Energy, VEI Capital, Foresight Solar VCT and Adenium Solar Energy.

Quercus stressed that it had initially invested €8 million ($8.53 million) in ForVEI, which operates in the private equity as well as in the infrastructure and energy sectors in Italy. The sale generated an IRR of higher than 9% for Quercus and it represents the first disposal by the Quercus Renewable Energy Fund, which was launched in 2010.
The funds raised from the sale will result in a dividend distribution to investors in the first quarter of this year. The QRE fund seeks to exit investments within a 5-7-year investment period and it is intended that the fund will liquidate by the end of 2018.

Diego Biasi, Co-Founder and CEO of Quercus:

“The ForVEI vehicle has been a very good and stable investment for Quercus and we are delighted to exit with an attractive IRR. The Italian renewable energy sector operates against the backdrop of a stable regulatory environment. However, as relative early entrants into the market, when the regulatory environment was less predictable, the Quercus investment approach managed to invest effectively and with a clear set of long term objectives in mind. The QRE portfolio has been optimised over the years and is set to meet investors’ long term expectations.”