Valfortec Launches €50m Solar Vehicle for Spain, Italy

• Valfortec launches €50m-plus vehicle to fuel 70 MW of new solar in Spain and Italy, tapping strong investor demand amid policy tailwinds and volatile power markets.

Spanish solar developer and services provider Valfortec is set to launch an investment vehicle of more than €50 million ($58.1 million) to expand its renewable portfolio. The vehicle will target new photovoltaic developments, reflecting investor appetite for energy-transition assets amid supportive European policy and high power-price volatility.

The platform aims to develop over 70 MW of solar projects across Spain and Italy, two of Europe’s most active solar markets. Valfortec did not disclose investors, project timelines or expected returns. The initiative underscores ongoing capital formation for mid-scale solar in Southern Europe as developers seek to accelerate construction pipelines and lock in grid connections.

Who are the investors and expected returns for Valfortec’s €50m vehicle?

• Expected investors: Spanish and pan-European infrastructure funds focused on mid-scale renewables; energy-transition private equity; family offices with Iberian exposure; insurance and pension capital via infrastructure managers; strategic co-invest from independent power producers; ticket sizes typically €5–15m per LP
  
• Sponsor commitment: Valfortec expected to retain a meaningful GP stake (c.2–10%) to align interests and maintain development control
  
• Capital structure: Equity vehicle targeting project-level senior debt from Spanish lenders and EC-backed facilities; typical leverage 50–65% loan-to-cost; construction revolver converting to long-term amortizing debt post-COD
  
• Return targets (equity): Gross IRR 10–13% under contracted/PPA-led strategy; 12–16% blended if partial merchant exposure; downside-protected case 8–10% with higher PPA coverage
  
• Cash yield: 4–6% during initial ramp, rising to 6–8% post-stabilization (years 2–3) assuming 80–90% availability and standard degradation
  
• Hold period and exit: 5–7 years per asset, portfolio exit to core/core+ buyers or partial refinancing to crystallize returns
• Fee and distribution profile (typical for this strategy): Preferred return 6–7% with catch-up; target 50–70% of distributable cash paid semi-annually once DSCR covenants are met