Editor's Note: This article has been updated to include legal advisers and quotes from interviews with key people involved in the deal.
Nomura has signed a deal to acquire sustainable technology and infrastructure-focused boutique investment bank Greentech Capital Advisors.
Greentech will sit within Nomura's Americas investment banking division and will be renamed Nomura Greentech following the deal, which is expected to close on March 31, 2020.
Advisers on the acquisition include:
· WilmerHale (legal, to Nomura),
· Skadden (legal, to Greentech), and
· Deloitte (accounting).
Greentech was founded in 2009 by managing partner Jeff McDermott as a boutique investment bank with a focus on the transition to sustainable infrastructure. “We believed that there would be a coming disruption across our energy, transportation, food, water, and waste industries as the world transitions to lower-carbon, more efficient, and more intelligent infrastructure systems," he said.
Having identified Asia as the largest and fastest-growing region requiring such expertise, McDermott began discussing expanding the firm’s presence to sustainable infrastructure in the region at the annual Greentech partners’ meeting last February.
He also sought to increase the M&A group’s value proposition to its clients by adding a financing platform, selecting Nomura as a partner in part because he had previously worked with Mike Rintoul, now Nomura Americas head of investment banking, while they were at UBS.
“Because we have trusted relationships with asset owners and CEOs from our M&A mandates, we will get in there early and offer to include financing as part of a holistic solution,” McDemott tells PFR.
From Nomura's point of view, the deal is designed to strengthen its investment banking offering in the Americas and capitalize on the opportunities presented by the transition to sustainable infrastructure.
In the Americas power sector, Vinod Mukani’s New York-based project finance team (PFR, 7/31/18), which has been an active lender to gas-fired projects, will look to Greentech’s renewables expertise to expand its presence in wind and solar lending.
“Vinod’s and Jeff’s teams will sync up and coordinate on client coverage, making sure each side is appraised of client relationships and trading sector-specific knowledge and expertise,” Rintoul tells PFR. “We’ll broaden the financing and solutions capabilities available to Greentech, especially in the global capital markets.”
Greentech is involved in several active renewable energy M&A situations as sell-side adviser, including sale processes for:
- Caithness Energy’s 845 MW Shepherds Flat wind farm in Oregon (PFR, 12/3),
- Longroad Energy Partners’ 300 MW Prospero and 83 MW Foxhound solar projects (PFR, 11/6), and
- Calpine Corp.’s wind platform (PFR, 10/11).
Nomura is not the first lender to bring in a whole renewables investment banking team this year. Fifth Third Bank poached MVP Capital's solar-focused I-banking team in August (PFR, 8/5).