HMC Capital has secured a $950 million (US$613 million) acquisition of Neoen’s Victorian renewable energy portfolio, marking its entry into the energy transition sector.
The portfolio includes 652MW of operational capacity spanning wind, solar, and battery energy storage systems (BESS), alongside a 2.8GW development pipeline, with several projects in advanced stages.
This acquisition will form the foundation of HMC’s inaugural Energy Transition Platform, which aims to raise $2 billion from investors. The company plans to complete this initial fundraising phase by mid-2025.
HMC Capital, an Australian investment and asset management firm with a market capitalisation of approximately $5 billion, has gained attention for its rapid growth. It recently announced the “Global Digital Infrastructure Platform”, featuring the DigiCo REIT, which is set to be the largest Australian IPO since 2021, driven by strategic data centre acquisitions.
The renewable energy deal, anticipated to close in July 2025, will be financed through $550 million in senior debt and deferred payments totalling $750 million at financial close, with an additional $200 million due in December 2025. HMC expects the transaction to positively impact earnings by FY26.
“Our move into the Energy Transition sector reflects the significant level of investment required both in Australia and globally to achieve decarbonisation targets,” said Managing Director David Di Pilla.
Energy Transition Chair Julia Gillard AC noted that the deal is crucial for advancing net-zero ambitions, saying, “We look forward to partnering with some of Australia’s leading institutional investors in creating a clean energy future and fighting against climate change.”
HMC’s assets under management will rise to approximately $19 billion post-acquisition, positioning the firm to surpass its $20 billion target by FY25.
Shares of HMC rose 1.7% on the news, closing at $12.40 on Thursday. Year-to-date, the stock has surged 100%.