Real estate fund raises R$1 billion to invest in distributed solar power plants.

Suno Asset has completed the fifth issuance of shares in the Suno Energias Limpas fund (SNEL11), raising over R$1 billion. The funds will be primarily used to acquire distributed generation plants already in operation, with signed contracts and a history of generation.

With this operation, the fund's net worth will approach R$ 2 billion, more than double the amount recorded before the offering. This volume, added to the unallocated resources from the previous fundraising, could enable the incorporation of up to 250 MWp into the portfolio.

Currently, SNEL11 has approximately 150 MWp of owned and managed assets. If the planned acquisitions are completed, the installed capacity could approach 400 MWp.

According to Vitor Duarte, CIO of Suno Asset, the increased availability of capital expands the fund's capacity to make new acquisitions.

“We are on track to become one of the largest clean energy players in Brazil. With a robust capital position and return discipline consolidated over five issuances, SNEL11 has the momentum to accelerate acquisitions precisely at a time when the distributed generation market most needs consolidation,” he states.

Focus on plants in operation.

The asset manager's strategy is focused on acquiring power plants that are already in operation, rather than building new projects. According to Suno Asset, this move is occurring in a context of high interest rates and increased debt, factors that have been putting pressure on the cash flow of distributed generation operators.

The manager's assessment is that the market remains fragmented, with mills in the hands of small and medium-sized companies, while the greater credit restriction may create opportunities for asset buying and selling operations.

Another factor considered by Suno is the price of these ventures. After a period of appreciation during the expansion cycle of new power plant construction, the asset manager states that the acquisition values ​​of operational assets have been declining and approaching the historical average for the segment.

According to Duarte, this scenario makes acquiring existing power plants more attractive than building new projects at this time.

“Building a project from scratch requires a construction timeline, execution risk, and tied-up capital until the plant becomes operational. With acquisition prices approaching the historical average for the segment again, buying a ready-made asset delivers a faster and more predictable return for the shareholder,” explains the executive.

SNEL11's strategy is focused on acquiring groups of assets controlled by larger operators, as outlined in the pipeline presented in the offering materials.

DG Market

This move comes amid growth in the Brazilian distributed generation market. According to data from ANEEL According to the National Electric Energy Agency, the installed capacity of the segment exceeded 50 GW in August, with more than 7 million consumer units served by the model.

According to Suno Asset's assessment, the fragmentation of assets, coupled with difficulties in accessing credit, could accelerate a consolidation process in the sector, with companies and capitalized funds acquiring existing ventures.

SNEL11 currently has over 125 investors and maintains a real estate investment fund structure. Created in December 2022, the fund focuses its investments on assets related to renewable energy generation.

Suno Asset also reported that it will continue to evaluate acquisition opportunities in the coming months, focusing on assets with long-term contracts and predictable revenue.

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