Denham Capital is a leading private equity firm focusing on the energy niche that is now investing $250 million in Ceiba Energy- a Latin American entity that employs power generation assets. The investment is in line with Denham Capital’s investment pattern in renewable and natural-gas power generation assets mainly in the Latin American region.
The partnership banks on 80 years of management experience that Ceiba Energy is bringing to the table, particularly in power generation and a wide range of other projects circling the production of energy in the Latin American region and other developing markets.
Currently, Ceiba Energy has over 50 Latin American power projects to its name which includes handling operations, finance, and re-finance where applicable. Denham, on the other hand, is also bringing a solid financial contribution to the equation which is going to help the development of several renewable and low-carbon energy projects.
Denham’s Managing Director’s Comments On The Recent Investment
The Managing Director of Denham’s International Power Team, Saurabh Anand, commented on the investment and stated:
“This partnership with Ceiba Energy brings to Denham an unparalleled combination of Latin American power experience. Ceiba has exceptional local and cross-border relationships, strong ties with lenders, a substantial target pipeline, and a strong track record in execution. They share our vision for sustainable growth and value creation and will complement Denham’s strong investment track record in Latin America. With this new venture, we are poised to remain power sector leaders in the region.”
Ceiba currently targets markets that have a commendable regulatory system and a strong managerial background of previously owned assets. Currently, Mexico, Brazil, Peru, Chile, Colombia, and Panama are on the list of target countries.
Ceiba Energy’s CEO Comments On The Partnership
The Chief Executive of Ceiba Energy, Emilio Vicens, was also happy about the partnership and mentioned that it was great that Denham was joining them in providing much-needed power generation to Latin America. He says that Denham is strong in capital terms while Ceiba has strong connections and a lot of experience in the industry. Combined, Denham and Ceiba Energy make a very worthwhile combination that leverages on both financial strength and networking/experience- the best of what both parties can bring to the table.
Ceiba Energy has strategized to accelerate growth through mergers and acquisitions with very targeted firms and Denham is one of them. The company also aims to maximize returns to shareholders.
Denham Capital has made the said investment through its International Power Fund.