Nicolas Escallon coverage in IJGlobal: Actis delivers early exit from Peru’s Orygen power platform
In IJGlobal, Nicolas Escallon, Managing Director and Co-Head of the Latin America region for Actis’ Energy Infrastructure franchise, discusses Actis’ investment in Orygen in Peru and the firm’s successful exit from the platform following a near two-year holding period.
In the article, Nicolas explains that Orygen reflects a type of transaction Actis has executed multiple times: identifying situations where international strategic owners no longer see a market as a priority, and moving decisively to acquire strong underlying businesses with clear potential for operational and strategic value creation. The piece highlights the work undertaken during Actis’ ownership of Orygen, including the carve-out from Enel, optimisation of the capital structure, expansion of the renewables footprint and strengthening of the contracted revenue base. It also notes that the platform was positioned as one of the market leaders in Peru’s energy transition, supported by operational improvements, management continuity and the development of additional renewable capacity.
Nicolas also comments on Actis’ exit to Grupo Romero, with Actis being approached directly and the subsequent process moving quickly following a short negotiation period.
Click here to read the full article online and read on below for a few of Nicolas’ comments.
Nicolas Escallon, Managing Director, Energy Infrastructure at Actis, commented:
“Orygen is a classic example of a type of deal that we’ve done several times in the past.”
“We liked Peru as an investment destination. We had invested there before. We’ve looked at opportunities to invest in the past, but we hadn’t found the right transaction so when this one showed up, we could move very fast. That’s what led to the success here.”
“We weren’t intending to sell. They approached us with an open conversation, contemplating partnerships to outright sales. We ended up negotiating a deal where they bought a hundred percent of the business. The negotiation itself was quite brief. Once we signed an exclusivity, a deal was signed within six weeks. It was extremely quick.”
Disclaimer
The case studies above are presented for informational purposes only and were selected to demonstrate the type of investments that Actis will seek to make. A prospective investor should not rely on the included transaction characteristics when making a decision on whether to invest. There can be no guarantee that transactions with similar characteristics will be available to Actis. Past performance is not a guarantee, projection or prediction and is not indicative of future results. Nothing herein constitutes a guarantee, projection or prediction.