Lehman Brothers takes stake in Canada's SkyPower

SkyPower, a leading renewable energy company in Canada, announced over the weekend that the private equity business of Lehman Brothers has taken "a significant equity stake" in its company.

No figures, however, were given. 

According to the company companies, the investment includes an up-front acquisition payment, and commitments to work together on future project financing as well as other investment opportunities in the renewable energy sector.

SkyPower says its existing management team, led by founder and CEO Kerry Adler, will continue to be responsible for ongoing day-to-day operations and strategic direction.

"We are excited to partner with the SkyPower management team in embracing the dynamic growth opportunities available in wind and solar energy,'' said Michael Odrich, global head of Private Equity for Lehman Brothers. "This investment is consistent with our Private Equity strategy of backing premier management teams and underscores the firm's commitment to renewable energy."

Since its inception in 2003, SkyPower has focused on developing wind and solar power projects in Canada, with interests in over 50 wind and solar projects at various stages of development, representing more than 7,000 MW of potential capacity. Its team comes from industries including energy, telecom, real estate, BPO (business process outsourcing), banking and engineering.

SkyPower was advised on the transaction by Marathon Capital headquartered in Bannockburn, Illinois, and Genuity Capital Markets based out of Toronto, Ontario.

The transaction is expected to close in the next few weeks.

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