Private equity firm RMB Corvest has invested in Sedgeley Solar Energy Namibia (Sedgeley Energy) as a strategic partner to enable Sedgley Solar to capitalise further on rooftop solar photovoltaic (PV) opportunities.
Independent investment banking firm Bravura, which was appointed by Sedgeley Energy, identified private equity fund RMB Corvest as a strongly-aligned investment partner.
RMB Corvest executive Brendan Wiebols says Sedgeley Energy’s innovative offering, record and growth potential were key considerations for the investment.
“Our strategy is to partner with management in formalising a strategy that will see the company achieving its growth potential, and to improve operational efficiencies that embed a solid corporate structure.
“Sedgeley Energy’s positioning in the rooftop solar space through its innovative and needs-driven solution made it a compelling investment prospect,” he says.
Sedgeley Energy – founded six years ago – is the exclusive engineering, procurement and construction provider to the SolarSaver Group, and has installed in excess of 400 individual solar PV systems across Namibia, South Africa and Botswana.
The SolarSaver portfolio now represents a significant fleet of commercial and industrial solar installations in Southern Africa.
SolarSaver was established to fund the solar systems built by Sedgeley Energy through long-term power purchase, or rent-to-own, agreements.
Sedgeley Energy provides all the ongoing operational and maintenance functions to the SolarSaver portfolio to ensure systems operate efficiently.
As such, SolarSaver clients benefit from a capital expenditure- and maintenance-free solution that provides a cheaper and greener alternative to grid electricity supply.
SolarSaver key shareholder Pembani Remgro Infrastructure Fund (PRIF) senior investment manager Michael Jacobs believes RMB Corvest’s investment in the group is well placed given PRIF’s strong market position, with a strong environmental, social and governance focus.
“SolarSaver helps meet the growing need for robust energy infrastructure on the continent through a sustainable and renewable solution,” he says.
Alongside PRIF, SolarSaver is supported by Stimulus Investments, Moshesh Partners Renewable Energy and Clean Infrastructure Fund I, while Leapserve Renewable Investments is an equity partner.
Facilitating the transaction, corporate finance principal Llewellyn Gerber says it was apparent at the outset that this could be a mutually beneficial relationship.
“For our client – Sedgeley Energy – RMB Corvest represents a like-minded partner with a highly developed network.
“While the monetary consideration is always significant, is it also crucial to look towards additional synergies when finding the right partner. Merger and acquisition is one of the areas where Bravura has developed strong capabilities,” he says.
Sedgeley Energy and SolarSaver co-founder Tim Frankish says that, as regional utilities struggle with supply and maintenance challenges, more Southern African businesses can benefit from SolarSaver’s “rent the sun” energy solutions.
Frankish says that, as the cost of grid electricity continues to rise, as the regional power grid’s instability increases and as the calls for businesses to implement renewable energy solutions from a governance perspective grow, Sedgeley Energy and SolarSaver are well placed to respond to market demand.
“The introduction of RMB Corvest will position Sedgeley Energy to continue growing the SolarSaver portfolio and to keep servicing that portfolio for the long term,” he says.