Fengate expands renewables portfolio with acquisition of Citigroup’s equity interest in operating 120 Mw wind farm in eastern New Mexico

Milbank, Tweed, Hadley & McCloy LLP has advised Fengate Capital Management in its acquisition of a 25% equity interest in the San Juan Mesa Wind Project LLC.

Fengate, a real asset investment firm based in Toronto, Canada, acquired Citigroup’s stake in the wind farm. San Juan Mesa is a fully operational 120-megawatt facility in eastern New Mexico that sells electricity under a long-term power purchase agreement with Southwestern Public Service Co.

The move represents Fengate’s inaugural investment in wind energy and its first stake in the United States, adding to the firm’s existing renewables portfolio in Canada and the United Kingdom. Fengate has more than $2 billion in infrastructure, real estate, and private equity assets under management worldwide.

Milbank Corporate partner Brien Wassner and Project Finance partner Daniel Michalchuk, both of the New York office, led the Milbank team on the deal.

“We’re pleased to have advised Fengate in making its debut investment in the U.S., which expands its renewables portfolio with a strong asset in the San Juan Mesa wind farm,” Mr. Wassner said. “The deal also highlights a number of Milbank’s marquee practices including corporate, project finance and renewable energy.”

Mr. Michalchuk added, “Acquiring this stake in San Juan Mesa strikes an important relationship between Fengate and the project’s principle owner, NRG Energy that should be mutually beneficial in coming years and help drive continued investment in renewable energy in North America and overseas.”

In addition to Messrs. Wassner and Michalchuk, Milbank attorneys advising Fengate included Corporate partner Matthew Ahrens and associates Amy Kurtich and Charles Lupica; Tax special counsel Drew Batkin; and Project Finance associate Jeeseon Ahn.