Energy is a growing concern for most countries of Latin America, which have imbalances between supply and demand for energy due to the rapid economic growth that these countries experience. Pursuant to the above, many governments are promoting diversification of the hydroelectric power matrix (carbon, liquefied natural gas, biomass and renewable energy) and promoting the entry of new participants.
In order to participate in the auspicious panorama of the energy sector in Latin America, starting as of 2007, the partners of SCL Energia started the project identification and investment opportunity process for the Investment Fund that it has projected to develop together with Activa. In this context, Americas Energy Fund I (AEF I) was organized in Canada under an LP Agreement. It is managed by SCL Energia Activa S.A. as a General Partner, a partnership of 50% SCL Energia and 50% Activa.
The investment thesis was based on the existence of energy markets in Latin America with strong current and future growth, with imbalances between supply and demand, and with similar regulatory frameworks. The funds managed by SCL Energia Activa are focused on developing small and medium plants or projects with high short and medium-term returns (mainly hydroelectric and carbon thermoelectric), in addition to the acquisition of medium-sized companies with significant growth advantages that allow for improving their profitability.
After the creation of the first fund AEF I, other 3 funds were incorporated: Fondo Enerético Andino (2010), TY Investment LP (2011) and Americas Energy Fund II (2013), Fondo Inversión Público Nueva Energía I (2014), Americas Energy Fund II Clean Energy (2015), Americas Energy Fund II Clean Energy Parallel (2015) and TPL Co-investment Fund LP (2015) also administered by SCLEA.