Joint venture strengthens partnership in the Italian renewable energy sector

AXA Private Equity, the European diversified private equity house, and the industrial company, Tozzi Group, have established a joint venture to invest in the Italian renewable energy sector. The joint venture, TRE & Partners S.p.a, acts as a holding company and comprises investments in wind farms, hydroelectric and solar projects in Italy.

TRE & Partners will consist of Tozzi Group assets - wind farms and hydroelectric projects already in operation, as well as projects currently under development or construction with a total gross capacity above 400 MW. AXA Private Equity provides considerable experience of the infrastructure market, along with a strong international presence and access to extensive business networks. Tozzi Group will own 55% of TRE & Partners, with AXA Private Equity holding the remaining shareholding.

AXA Private Equity has a longstanding track record of successful and disciplined investments worldwide, and currently manages $2 billion of infrastructure investments. Since 2005, the infrastructure team of AXA Private Equity has invested more than €500 million in six transactions in the transport, energy, water distribution and waste treatment sectors in France, the United Kingdom and Italy.
This transaction is one significant step forward in the partnership between AXA Private Equity and Tozzi Group in the Italian renewable energy sector that begun on n February 3rd, 2009 when AXA Private Equity acquired a 30% participation in Serracapriola wind farm (42 MW). A first investment was made in July, 2007 in 41.4 MW Calvello project. Both projects are now fully operational.

Mathias Burghardt, Head of Infrastructure Group at AXA Private Equity, said: “The renewable energy sector has a bright future, with strong likelihood of consistent and solid growth over the long term. Our partnership with Tozzi Group, with its excellent track record, understanding of the renewable energy market and business expertise, will ensure we can make the right investments on behalf of our investors, creating value in important infrastructure businesses.”

Franco Tozzi, Chairman of Tozzi Group, said: “We have already established a significant presence in Italy, and believe we have the opportunity to expand our investments in the renewable sector with the support of AXA Private Equity. The firm is well known for its hands-on, partnership approach to investment, and we look forward to benefiting from their considerable experience in investing in infrastructure. We believe we have a real opportunity to become a serious force in renewable energy in Italy and Europe.”

About AXA Private Equity

AXA Private Equity (www.axaprivateequity.com), an AXA Investment Managers company, is a diversified private equity house with $25bn of assets under management and international reach across Europe, North America and Asia.
The firm provides investors with funds across the full range of private equity offerings: direct funds -
infrastructure; LBO mid cap and small cap; venture capital; co-investments; funds of funds - primary,
early secondary and secondary and finally mezzanine. With offices in Paris, Frankfurt, London, Milan, Zurich, Vienna, New York and Singapore, AXA Private Equity offers company management commitment to long-term growth by providing access to its international offices. Investors rely on the firm’s regular, comprehensive feedback on performance and portfolio companies.

AXA Private Equity, Global Investments The European Way

About Tozzi Group

Tozzi Group is an industrial group that has been operating for 50 years in the production of:

• Electrical Switchboards
• Electrical and Instrument plants
• Power plants from renewable energy sources
• Prefabricated equipped containers for power distribution and control/automation systems

The group recently diversified in the development and operation of renewable energy projects in Italy and abroad (wind farms, hydroelectric projects, solar projects).

www.tozzisud.com
www.tre-energia.com

List of parties involved in the transaction

AXA Private Equity 

• Mathias Burghardt, Head of Infrastructure and Managing Director
• Benoît Gaillochet, Director
• Stefano Mion, Senior Investment Manager
• Marion Calcine, Investment Manager 

Tozzi Group

• Franco Tozzi, Chairman
• Andrea Tozzi, Chief Executive Officer
• Amedeo Liurni, General Director
• Roberto Fagnocchi, Financial Manager 

Advisors
Advisors to Tozzi:

• L&B Partners S.p.A. (Financial Advisor)
• L&B Studio Legale Associato (Legal Advisor)
• Eos Consulting S.r.l. (Technical Advisor)Andrea Tozzi, Chief Executive Officer

Advisors to AXA Private Equity:

• UniCredit Mediocredito Centrale S.p.A. (Financial Advisor)
• Ashurst L.L.P. (Legal Advisor)L&B Partners S.p.A. (Financial Advisor)