HMC Capital has announced the acquisition of Neoen’s Victorian renewable energy portfolio for $950m, marking a step in its move into the energy transition sector. The portfolio includes 652MW of operational capacity across wind, solar, and battery energy storage systems (BESS), along with a 2.8GW development pipeline featuring advanced-stage projects.
The purchase will seed HMC's inaugural Energy Transition Platform. The platform aims to raise $2bn in funding from investors, with the goal of completing this initial fundraising phase in the first half of 2025.
HMC Capital is an Australian investment and asset management firm. Its market cap is around $5bn. Recently, the company gained attention for its strong earnings growth and plans to launch the "Global Digital Infrastructure Platform", including the DigiCo REIT, which is poised to be the largest Australian IPO since 2021. Anchoring this platform are significant data centre acquisitions.
Neoen is a renewable energy company headquartered in France, with projects across Europe, Australia, the Americas and Africa.
The renewable energy acquisition, expected to close in July 2025, will be funded by $550m in senior debt and deferred payments of $750m at financial close and $200m in December 2025. HMC expects the transaction to be earnings accretive by FY26.
Managing Director David Di Pilla described the deal as a significant opportunity to support Australia's decarbonisation targets, while Energy Transition Chair Julia Gillard AC highlighted the importance of the acquisition in achieving net-zero goals.
With this acquisition, HMC's assets under management are set to increase to approximately $19bn, putting the company on track to exceed its $20bn target by FY25.
Shares are trading 0.74% higher at $12.28. Year to date, they're up 100.49%.
