Northleaf Capital Partners Sells Mula Solar Farm

TORONTO — Northleaf Capital Partners (Northleaf), a prominent global private markets investment firm, has announced the divestment of its majority stake in NCP Mula Solar (Spain), S.L. (Mula), a significant solar photovoltaic plant with a capacity of 494 MWp, located in Murcia, Spain. This successful transaction marks the completion of Northleaf’s strategic plan for Mula and is expected to provide substantial cash returns to its investors.

The sale was executed alongside minority partner Qualitas Energy and involves a joint sale to China Three Gorges (Spain), S.L.U., which is an indirect subsidiary of the state-owned China Three Gorges Corporation, a leader in the clean energy sector within China.

Mula is one of the largest operational solar facilities in Europe. It boasts a strong financial profile due to an advantageous long-term power purchase agreement with a financially solid counterparty, as well as financing arranged with top-tier banking institutions. Additionally, the plant is located in an area with some of the highest solar irradiation levels in Spain, alongside robust transmission networks that can support further renewable energy advancements.

Northleaf managed to secure a controlling interest in Mula back in 2018, overseeing the plant's construction and optimization efforts. In late 2023, the firm decided to initiate a structured sale process.

“The successful sale of Mula highlights our capability to continually deliver value by centering on mid-market infrastructure assets that provide stable cash flow, strong yields, and links to inflation,” said Roderick Gadsby, Managing Director & Head of European Infrastructure at Northleaf. “Our strategy focuses on sourcing, growing, de-risking, and opportunistically exiting core infrastructure assets to produce appealing returns for our investors across various market conditions.”

The closing of the transaction is anticipated to occur in early 2025. Northleaf was supported in this transaction by several advisory firms, including Société Générale for financial guidance, Watson Farley & Williams for legal services, E&Y for accounting and tax matters, and DNV for technical support.

About Northleaf Capital Partners

Northleaf Capital Partners is a globally recognized private markets investment firm with over US$27 billion in commitments across private equity, private credit, and infrastructure investments. The firm serves a diverse client base, including public, corporate, and multi-employer pension plans, as well as endowments, foundations, financial institutions, and family offices. Northleaf employs a dedicated team of 275 professionals located in major cities around the world, focusing on evaluating and managing investments in the mid-market sector.

Northleaf, Solar, Investment