SL Capital Partners, a subsidiary of Standard Life Investments, is set to buy Nordic Power from Norwegian utility Nordkraft, according to The Scotsman newspaper.
Nordic Power operates 13 small hydro energy plants. Under the agreement between SL Capital and Nordkraft, the latter will manage, operate and maintain the plants and will seek to sell further assets that are close to being commissioned.
Dominic Helmsley, managing director of infrastructure at SL Capital, said: "Small hydro power is a growth area of the market across Europe and we will pursue scale through additional purchases in the sector."
Last week SL Capital, based in Edinburgh, Scotland, bought the shares of Gasum distribution network subsidiaries Gasum Paikallisjakelu and Helsingin Kaupunkikaasu in Finland. The acquisition is being facilitated through the SL Capital Infrastructure I (SLCI I) fund.
The transaction is part of Gasum's strategy to focus on the development of the Nordic gas market and energy infrastructure through environmentally friendly solutions.
Roger Pim, managing partner of SL Capital, commented: "This local gas distribution business represents an excellent first investment for our fund. As a regulated utility in a safe and stable economy, it fits squarely with our strategy to invest in core infrastructure across northern Europe. We are very pleased to be working in partnership with Gasum to further develop this business for the future."
SL Capital Partners' clients include institutional investors from the UK, US and Europe, as well as family offices and wealthy individuals globally. The firm has raised and manages a total of about €9.1bn ($10bn) in private equity assets.
