Australian private equity firm Harbert has made its maiden investment in solar panel provider Solar Shop, valuing the business at A$50 million (£24 million).
Australian private equity firm Harbert has made its maiden investment in solar panel provider Solar Shop, valuing the business at A$50 million (£24 million).
The investment from Harbert’s first fund buys the firm a stake of 18.1 per cent in the company, which sells and installs solar photovoltaic (PV) panels in homes and off-grid power systems. Harbert’s managing director Jeremy Steele says the firm plans to make further investments in Solar Shop, which he expects to benefit from rising fossil fuel power prices.
Adds Steele, ‘Solar Shop’s more diversified strategy gives it a distinct competitive advantage when the majority of the [solar PV] market is characterised by a large number of players competing on price to sell 1kW systems.’
Solar Shop operates in major Australian cities, with a network of renewable energy consultants extending its reach inland.
Harbert Australian Private Equity Fund I has total commitments of A$40 million and is focused on companies in South Australia with an enterprise value of between A$10 million and A$100 million. Its parent company is US-based alternative investment group Harbert Management Corporation.
The firm plans to raise further capital for a fund of approximately A$100 million.
