MEAG, acting as the asset management arm for entities of Munich Re, has agreed to invest $300 million for a 12% stake in global infrastructure investment firm HRL Morrison & Co’s (Morrison & Co) portfolio company Longroad Energy (Longroad), a provider of renewable energy project development, operating assets and services.
MEAG joins an ownership group comprised of Morrison & Co’s listed infrastructure business, Infratil Ltd, and the NZ Super Fund, each of whom have agreed to invest an additional $100 million into the company, as well as Longroad management. Infratil and the NZ Super Fund will retain a ~37% stake each following the transaction close with the balance of ~14% owned by Longroad management.
Proceeds from the additional capital will primarily be used to fund Longroad’s near-term development pipeline, which includes 4.5 GW of development projects to begin construction over the next 3 years. The company is planning to reach financial close on ~1,000 MWs of projects before year end, including Sun Streams 3, the 500 MW solar and storage project in Maricopa County, Arizona.
