Power-focused investment manager Newave Capital has reached financial close on its first energy infrastructure fund in Brazil.
The São Paulo-based firm raised R$ 590.6 million ($123.1 million) for its Newave Energia I Advisory fund from about 10,000 investors. The operation was led by Brazilian investment firm XP Investimentos.
The fund will invest in Newave Energia, a renewable company that develops and operates solar and wind projects with a focus on small and medium-sized companies. The company was created last November with the aim of developing about 2.5GW of solar and wind greenfield projects.
Newave Energia is owned at 66.67% by Newave Capital while Brazilian steel manufacturer Gerdau acquired 33.33% of the stakes following a R$1.5 billion ($279 million) input (PFR, 11/28). Gerdau also committed to purchasing 30% of the output generated by the company’s projects.