Terra Firma invests heavily in China’s renewable energy

A major British private equity firm is continuing its diversification into renewable energy by setting up a US$5 billion investment fund in China.

Terra Firma Capital Partners Ltd is planning a fund of up to US$5 billion with China Development Bank for investments in renewable energy in China. The partners are expected to start raising between US$3 and US$5 billion in the next few months.

China Development Bank will market the fund in China to potential investors while Terra Firma will seek backers in Europe and the United States among traditional private equity investors and infrastructure fund investors, the person said.

Terra Firma invests across a range of sectors and has focused on leveraged buyouts of large, asset-rich businesses, often with complex structural or regulatory issues. Terra Firma has headquarters in London with offices in Beijing, Frankfurt and Guernsey.

More recently, Terra Firma has been an active investor in renewable energy. Its investments include Infinis, the UK’s leading independent pure green energy business, EverPower, a U.S. based wind energy business and Rete Rinnovabile, Italy's leading solar power generator.