Aviva Investors, the asset management business of the British composite insurer, has agreed to acquire an initial 35% shareholding in Innovo Renewables, an Italian company which develops, constructs and manages renewable energy projects across Italy, the UK and Spain.

The agreement can be raised to 50% within 24 months, said Aviva Investors.

Darryl Murphy, managing director for infrastructure at Aviva Investors, said the company had ambitious plans to expand its infrastructure equity portfolio, which it considers an important element within the firm’s long-term growth and sustainability objectives.

Murphy added: “Importantly, this deal sees us invest in the Innovo platform as a whole, rather than an individual asset. We believe this approach represents the future of infrastructure investing, creating multiple revenue streams and providing our infrastructure investment programme with significant scalability and future growth potential.” 

The deal will help Innovo Renewables scale up its business and increase the development of renewable energy projects across its primary markets. It will also support the development of Innovo’s construction and operational capabilities as it aims to transform from a renewable energy developer into one of “Europe’s leading independent power producing platforms”, according to Aviva Investors.

As part of the agreement, Rodolfo Bigolin, founder of Innovo Renewables, will remain in his role as chief executive. Roberta Benedetti, a sustainability-focused investor and impact consultant, has been appointed as non-executive chair at Innovo, bringing further sustainability and industry expertise to the company’s management team. 

Bigolin said the deal with Aviva Investors “confirms the market attractiveness of Innovo”, adding: “We are very proud that one of the leading managers of real assets investments has chosen to invest in our company, trusting our capacity to implement projects that support the ongoing energy transition.”

Innovo Renewables currently has a five-year pipeline of more than 2.8 GW in solar, onshore wind and battery storage projects across its core markets of Italy, the UK and Spain, with ambitions to expand into additional markets across Europe. 

Ashurst provided legal advice to Aviva Investors. Innovo Renewables was advised by Legance for legal and by Prothea and AD Capital for the financial aspects of the deal.

In September, Aviva Investors announced it would invest up to £110m in electric vehicle infrastructure provider Connected Kerb, to support the delivery of 190,000 on-street EV chargers across the UK by 2030.