Private equity firm Partners Group has sold its stake in Japan Solar, a 610MW platform of Japanese solar power assets, for a 3.2x return on its original investment.
The business has been sold to a consortium led by Global Investment Partners.
Partners Group acquired its initial stake in Japan Solar in 2013 shortly after the Japanese government introduced a Feed-in Tariff to encourage investment in the renewable energy sector. Its backing was part of a US$250 million investment to fund the construction of utility-scale power plants across Japan.
Partners Group made a further equity investment into Japan Solar during the holding period, making it the largest shareholder in the platform.
Japan Solar currently consists of 27 secured projects totaling more than 610MW of capacity, of which over 200MW is operational and contracted into long-term power purchase agreements with Japanese electric utility companies.
It is estimated that once Japan Solar's secured projects become operational, they will generate enough energy to power around 133,000 households.
Benjamin Haan, Partner and Head of Private Infrastructure Asia at Partners Group, said: "Japan Solar was a timely project and we are delighted to have contributed to the build-out of Japan's renewable energy production capacity. The successful sale of our stake in Japan Solar ahead of our original exit timeline provides an attractive return to our clients and endorses our strategy of platform-building in markets supported by transformative trends."
The sale of Partner Group’s holding in Japan Solar is its third infrastructure exit in January. It follows the sale of its stakes in Silicon Ranch Corporation, a developer, owner and operator of solar energy facilities in the US, and the Victorian Comprehensive Cancer Centre, a cancer research, treatment and education centre in Melbourne, Australia.