Vinci Compass acquires stake in Faro Energy to expand solar presence

Vinci Compass, the climate impact fund of Vinci, has acquired a 50% stake in Faro Energy, a platform with approximately 200 MW of installed capacity across 125 solar plants in 17 Brazilian states. The fund intends to increase its ownership to 70% in the coming months.

The acquisition comes during a period of volatility in the distributed generation sector, characterized by high interest rates and operational difficulties for many platforms. Vinci executives noted that Faro Energy was selected due to its healthy financial status, having grown without additional leverage at the holding level and utilizing project finance for asset funding.

Vinci plans to use Faro Energy as a primary platform for future acquisitions and consolidation within the renewable energy segment, aiming to capitalize on market opportunities created by the current industry crisis.