Longroad Energy announces $500 million equity investment from MEAG, NZ Super Fund and Infratil

NZ Super Fund and Infratil Join MEAG to Support Longroad’s Transition to Development and Asset Ownership; Longroad sets target to expand operating portfolio to over 8.5 GW within five years

BOSTON, August 1, 2022 /PRNewswire/ — Long Road Energy Holdings, LLC (“Longroad”) today announced a $500 million equity investment by MEAGacting as the asset management arm for the Munich Re entities, alongside two of the company’s existing investors, the NZ Super Fund and Infratil, a listed entity managed by Morrison & Co.’s model company towards a more ownership-oriented model, and will accelerate the expansion of its current portfolio of 1.5 GW of owned assets, to 8.5 GW of wind, solar and storage projects over the next five years.

Milford Wind, located in Beaver County, Utah, is among the 1.5 GW of wind, solar and storage assets owned by Longroad Energy. Longroad aims to grow its operating portfolio to 8.5 GW over the next 5 years, fueled by the $500 million capital injection from MEAG, NZ Super Fund and Infratil.

$500 million The infusion provides Longroad with the capital needed to move quickly to a strategy focused on asset ownership.”

“This significant injection provides Longroad with the capital needed to move quickly to an asset ownership strategy. It will also fuel our acquisition targets and continue to support our investments in adjacent sectors, as we did recently with Valta Energy in the DG space,” said Paul Gaynor, CEO of Longroad. “We are delighted that MEAG is joining our existing investors in fueling our robust growth plans, and we appreciate their collective support as we move forward in implementing our ambitious near-term goals.”

dr. Alexander PollSenior Investment Manager of MEAG responsible for infrastructure investments in the United States: “This investment is an important step to further increase the renewable energy portfolio in the United States for Munich Re. Given Munich Re’s strong position on the American insurance market, we are interested in investing more in United States.” Martin Kaufmann, Senior Investment Manager MEAG US infrastructure investment: “This investment makes an important contribution to Munich Re’s net zero climate commitment as part of the Net-Zero Asset Owner Alliance (AOA), which Munich Re has joined in 2020. We are also pleased to have teamed up with professional partners on this investment to build a successful long-term relationship.”

Del Hart, Head of External Investments and Partnerships, NZ Super Fund, said: “Longroad has been one of the NZ Super Fund’s most successful investments and, in line with our long-term partnership approach to developing infrastructure, we are delighted to welcome MEAG as a co-investor and bring in more capital ourselves. It has been exciting to watch Longroad grow since we first invested in 2016 and we look forward to seeing it continue to deliver both strong financial returns and positive environmental and social results.

“Infratil is extremely pleased with this result,” said Jason Boyes, CEO of Infratil. “We remain very optimistic about Longroad’s opportunities and prospects. It is well positioned in a key geographic area, with high-quality operating assets, integrated growth through its development portfolio and a proven team. The new investment from a leading global infrastructure investor in MEAG is a strong endorsement of the company and the industry.”

Positioned for growth

High value pipeline
In addition to its 1.5 GW net-owned operating portfolio, Longroad’s balance sheet includes 3.2 GW of developed and acquired projects. Longroad has a significant development pipeline of approximately 15 GW of wind, solar and storage projects in 13 states, including key growth markets such as Arizona, California, Hawaii, Maineand Utah:

  • Arizona – Operation and development portfolio of nearly 4 GW of solar and storage

  • California – Operation and development portfolio of more than 3 GW of solar and storage

  • Hawaii – Development pipeline of more than 500 MW of solar and storage

  • Maine – Development pipeline of more than 1 GW of wind, solar and storage

  • Utah – Operating 306 MW of wind assets, with a development pipeline of over 2 GW of wind, solar and storage

Sourcing strategy
To support its pipeline development, Longroad has established a close relationship with First Solar and recently signed a multi-year contract with Powin Energy, providing favorable supply status and supply chain benefits. Longroad is currently under contract with First Solar for nearly 4 GW of panel supply through 2026, as well as with Powin to procure up to 4.5 GWh of storage through 2025.

Longroad’s financial advisors on the transaction included lead advisor Goldman Sachs & Co., as well as KeyBanc Capital Markets and Lazard Frères & Co. LLC. Morgan Lewis served as legal counsel. Barclays acted as financial advisor to MEAG and Holland & Knight as legal counsel.

About Longroad Energy Holdings, LLC
Founded in 2016, Longroad Energy Holdings, LLC focuses on wind, solar and storage project development, operating assets and services. Today, Longroad owns 1.5 GW of wind and solar projects across United States and operates and manages a total of 3.5 GW of wind and solar projects on behalf of Longroad and third parties. Upon closing of this transaction, Longroad will be owned by NZ Super Fund, Infratil Limited, MEAG and Longroad Energy Partners, LLC.

Longroad adheres to strong ESG operating principles and intends to expand its commitments to socially responsible business practices, reduced carbon emissions, environmental sustainability, and diversity, equity and inclusion practices (DEI). Longroad will continue to prioritize partners who follow similar business practices and encourage deeper ESG engagements.

www.longroadenergy.com
Twitter: @LongroadTweet
LinkedIn: Longroad Energy

About MEAG
MEAG manages the assets of Munich Re and ERGO. It has representations in Europe, Asia and North America and offers its vast know-how to institutional and private clients. MEAG currently manages assets worth around €330 billion, of which around €60 billion is in its business with institutional investors and private clients.

MEAG invests in alternative assets in North America on behalf of the Munich Re group and other non-US institutional investors. MEAG’s most recent infrastructure investments in the United States include 400 MW of solar farms and battery storage in California in 2021, various U.S. hydraulic assets regulated in 2020, as well as the New York one Astoria Energy Partners and Long Beach Container Terminal in 2019.

Longroad Energy Logo (PRNewsfoto/Longroad Energy)

Longroad Energy Logo (PRNewsfoto/Longroad Energy)

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SOURCE Longroad Energy

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