HMC Capital Limited (ASX: HMC) is an ASX-listed alternative asset manager that focuses on high-conviction, scalable real asset strategies. The company partners with individuals, large institutions, and superannuation funds to deliver long-term value through its diverse portfolio of assets. HMC Capital’s investment approach is centred around identifying opportunities in real assets, including infrastructure, property, and renewable energy, aiming to generate sustainable returns. With a commitment to disciplined investment practices and a strong track record, HMC Capital continues to be a trusted player in the Australian investment landscape.
Expanding Growth Pipeline with High-Quality Renewable Assets
HMC Capital Limited has made a bold move into the Australian energy transition sector by securing a $950 million acquisition of Neoen’s Victorian portfolio. This strategic acquisition, which includes 4 operational renewable energy assets totalling 652MW and 6 development assets with a combined capacity of more than 2,800MW, marks a significant milestone for HMC Capital as it looks to strengthen its Energy Transition Platform. With this acquisition, HMC Capital aims to accelerate its renewable energy footprint and boost its assets under management (AUM) to approximately $19 billion, setting the stage for continued growth in the sector.
The acquisition of Neoen’s Victorian portfolio greatly enhances HMC Capital’s energy transition pipeline. The portfolio’s growth potential includes a 2.8GW pipeline of wind and battery energy storage system projects, providing HMC with an excellent platform to expand its renewable energy assets. Notably, this includes a 600MW BESS project that has already secured development approval, alongside over 1,200MW in mid-stage wind developments. The Victorian region, home to these projects, plays a critical role in Australia’s National Energy Market (NEM), making this acquisition particularly valuable.
The Neoen Victorian portfolio will allow HMC Capital to further diversify its renewable energy investments, cementing its top 10 position in renewable energy generation and storage in the NEM. The acquired assets not only provide a solid base of operating renewable capacity but also a promising future pipeline that will drive long-term growth. With these newly added projects, HMC’s Energy Transition Platform now totals around 6.2GW in operational and development capacity. Once fully developed, this portfolio is expected to represent a $12 billion AUM opportunity, significantly contributing to HMC’s overarching investment goals.
Strengthening Financial Performance and Securing Capital
The acquisition is being financed with a strategic combination of asset-level senior debt and deferred settlement terms. HMC Capital has secured a $550 million senior debt facility from a global banking syndicate to support the purchase, with $750 million due on financial close in July 2025 and the remaining $200 million to be settled by December 2025. This financial structure allows HMC to manage the acquisition efficiently while aligning with its growth ambitions.
Importantly, HMC expects the deal to be immediately earnings accretive following its financial close in FY26. This will contribute to the company’s increasing assets under management, which are expected to grow to around $19 billion, with a target of surpassing $20 billion by FY25. The acquisition also positions HMC to successfully raise capital for its Energy Transition Platform, with fundraising efforts well underway. The platform has garnered strong interest from domestic superannuation funds, who are eager to invest in the long-term fundamentals of Australia’s renewable energy market. With an initial fundraising target of over $2 billion, HMC is poised to continue growing its energy transition fund, further accelerating the company’s renewable energy investments.
Strategic Approach and Long-Term Commitment to Australia’s Energy Transition
The Neoen Victorian portfolio acquisition is a highly opportunistic, event-driven deal. This deal also aligns with HMC’s broader strategy of capitalising on emerging opportunities in the renewable energy sector. By securing a diversified portfolio of high-quality operating assets, HMC is well-positioned to continue its leadership in the renewable energy space and contribute to Australia’s decarbonisation goals.
The acquisition also strengthens the existing relationship between HMC Capital and Stor Energy, which will manage the newly acquired assets. Stor Energy is led by an experienced management team, including Gerard Dover, and boasts deep expertise in both the operational and development aspects of energy transition projects. The company is already working with multiple institutional investors, landowners, and other key stakeholders to ensure a smooth transition and continued growth in the sector.