Preqin’s Buyout Deals Analyst shows that within the clean technology industry, there have been 425 private equity-backed buyout deals since 2006, with an aggregate value of $19.3bn. As can be seen in the graph below, aggregate deal value has been quite volatile during the period, with a total of $628mn collected from 40 deals in 2014YTD - around half the full year aggregate value in 2013.
Focusing on regional breakdowns, North America has so far dominated 2014 in terms of number of deals, contributing the majority (60%) of all investments within clean technology. Although North America received a large proportion of the number of private equity-backed buyout deals in the sector, the aggregate value of deals in this region is only a quarter of the total deal value globally in 2014 YTD, representing a decline of 20 percentage points from 2013. In contrast, Asia has seen the highest aggregate value of private equity-backed deals within the clean technology sector, with 54% of global aggregate value, but the region has accounted for just 10% of the number of clean technology-focused deals so far this year.
The largest deals in the clean technology industry in 2014 to date have been for portfolio companies based in Asia. Of these, the largest was NewQuest Capital Partners’ investment in China Hydroelectric Corporation - an independent hydroelectric power producer based in Beijing, China. The deal was announced in January this year, when NewQuest Capital Partners entered into an agreement to acquire the company for $190mn in a take-private deal. The second largest deal this year came from India in July, with a consortium of investors providing $140mn of financing for ReNew Wind Power Pvt. Ltd., a wind- and solar-focused renewable power producer.