IG4 Capital is in advanced negotiations to invest in Rio Alto Energias Renováveis, a Brazilian solar energy company currently undergoing a debt restructuring process, according to a report by Bloomberg citing sources familiar with the matter.
The prospective transaction would mark the debut investment for IG4 Capital’s third flagship vehicle, Fund III, which has secured approximately $200m in commitments to date.
Rio Alto operates and develops solar power assets totalling more than 1.8GW. However, the company has faced mounting financial pressures and filed for court protection in February to temporarily halt creditor actions as it seeks to reorganise approximately BRL1.5bn ($260m) in debt.
Sources indicate that the deal under discussion would include a significant capital injection of around BRL300m ($52m), alongside the debt restructuring.
While other potential bidders are understood to have shown interest, IG4 is seen as well-positioned to progress with the transaction. The São Paulo-based alternative investment firm is led by co-founder Paulo Mattos, a former executive at GP Investments and ex-director of Brazilian development bank BNDES.
