This quarter we take a special look at the Renewable & Alternative Energy - Wind Power Generation Equipment sub-sector (E1.1) and, in particular, shed some light on the background to the recent acquisition of Danish wind energy service provider Vento by Vidia Equity, which has raised over EUR 400m with its Climate Fund.

Valuations of EBITDA multiples in the sustainability sector have remained relatively constant between 8.0 and 10.0x since Q4 2022. The Food, Agriculture & Forestry sub-sector (E7) continues to achieve the highest valuations, followed by the Renewable & Alternative Energy sector (E1) detailed in this report, while the Waste Management & Technologies sub-sector (E5) remains the lowest valued.

Valuations in the sustainability sector are trending slightly lower, mainly because geopolitical uncertainties in Europe and the upcoming US presidential election are dampening investment sentiment. In addition, the challenging macroeconomic environment with high inflation, energy prices and supply chain issues is weighing on financial markets and M&A valuations. Despite these challenges, the long-term outlook for sustainability M&A activity remains positive. The global transition to a low-carbon economy and the increasing importance of ESG criteria continue to drive demand for sustainable investments. Technological innovation and advances in wind and solar power, as well as energy storage and hydrogen technology, are providing new M&A opportunities. Companies and investors are increasingly recognising the long-term profitability of sustainable business models.

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