Arkolia is a fast-growing French fully integrated developer, #2 Independent Power Producer (IPP) for rooftop photovoltaic in the French market and active on the ground-mounted photovoltaic and wind segments. Founded in 2009, the firm reached a point in 2024 where it needed a significant funding injection to finance its capital expenditure plans and meet future growth targets.
In November 2024, after several months of negotiations, a consortium made up of BNP Paribas Asset Management and Mirova reached an agreement to acquire a majority stake in the business while Arkolia’s co-founder and President, Jean-Sébastien Bessière, kept its participation. The transaction, is expected to help Arkolia reach a target of almost 1.5 gigawatts of production capacity by 2030, doubling its turnover to more than €500 million a year.
A streamlined business model with proven scaling capabilities
BNP Paribas Asset Management’s involvement in the deal comes through its Low Carbon Transition Infrastructure Equity strategy, which focuses on supporting infrastructure projects related to the energy transition.
Arkolia is the type of company that we are seeking to invest in, predominantly by taking minority stakes alongside founders, management team and financial partners. Based in Mauguio, near Montpellier, Arkolia typically works with partners such as farmers and large Commercial and Industrial (C&I) players, installing solar panels on the roofs of their outbuildings or warehouses. With regards to farmers, Arkolia offers to construct hangar free of charge, in line with the client’s needs, in exchange for the right to use the roof for the lifetime of the panels. For C&I players, Arkolia usually acts as an Engineering, Procurement and Construction (EPC) contractor, meaning it develops and constructs the installation for an EPC fee.
In recent years, Arkolia started building ground-mounted solar panels, working with a variety of clients but mostly with sites in the agricultural sector. The company also works with investors seeking to self-finance energy projects across France, taking responsibility for construction, ongoing operation and maintenance.
Arkolia now has a total installed capacity of well over 500 megawatts and employs more than 200 people in six offices. In 2024, the company launched an innovation programme, Alpha, which will act as an incubator for the latest thinking on smart energies and renewables.
Assessing the investment opportunity
One of the aspects that stood out about Arkolia when we were considering investing was the fact that it had become a top-notch industrial player in the photovoltaic field. The firm builds more than 600 projects per year, and has been able to create a highly disciplined organisation that can move quickly, deal with regulatory issues or permittings and understand any challenges they might face in areas like construction, operation and maintenance
Arkolia decided to seek private equity investment after having previously been funded almost exclusively through debt financing. Arkolia’s co-founder and CEO Jean-Sebastien Bessiere says, “our goal was to identify allies capable of providing the resources needed to accelerate our growth while preserving our group’s unique DNA, characterised by our strong capacity for innovation and our commitment to value-sharing.”
Under the terms of the transaction, Mirova and BNP Paribas Asset Management have the same rights and obligations, and the same level of capital commitment. This transaction constitutes the first collaboration between the Infrastructure Equity team and Mirova, and the relationship has been extremely positive. This is mostly due to common shared values from both companies to decarbonise the global economy.
Following the investment, Arkolia will focus on developing and strengthening solar and wind projects, building its capabilities in the former and maintaining market share in the latter.
As part of the transaction, Arkolia’s President and CEO will lead the next phase of development of the company, as they are best-positioned to keep the company’s successful track on the investment horizon.
To conclude, Rodolphe Brumm, Head of Infrastructure Private Equity at BNP Paribas Asset Management, commented “We are delighted to partner with Mirova, as well as Arkolia management team to support the company’s ongoing journey as a leader in the distributed energy generation space. This is the Low Carbon Transition Infrastructure Equity Strategy’s second investment and part of BNP Paribas Asset Management’s overall strategy of investing in equity in leading companies contributing to a low carbon economy in Europe.”
Key figures
Arkolia founded
Employees
Total installed energy capacity
2030 energy capacity target
[1] Source: Arkolia as of 2023.
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