hep is achieving sustained success – “A” rating in the Scope Initial Rating for HEP Kapitalverwaltung AG

hep is projected to have an excellent future outlook thanks to growth and risk reduction

hep is currently in a phase of dynamic growth. In addition to expanding into the U.S., this includes increasing the workforce and constructing a new headquarters building in Germany. The proactive approach to addressing the risk described by Scope as a “key personnel risk typical of medium-sized companies”—achieved by expanding hep’s executive management team—was viewed positively in the assessment.

“Scope’s strong rating demonstrates once again that our exclusive focus on solar investments in the world’s strongest photovoltaic markets and our holistic business approach keep us at the forefront of the industry,” says Christian Hamann, CEO and co-founder of hep. “We view this result as a mandate to play an even greater role in shaping the German financial market in the future. That is precisely what we aim to achieve with our comprehensive expansion strategy. Every day, we demonstrate that sustainability, growth, and returns are not mutually exclusive.”

hep impresses in the rating with its holistic business approach

In the rating, hep Asset Management stands out due to four key factors:

First, its local presence ensures optimal market access. hep maintains its own on-site offices in the most important target markets.

Second, its integrated business approach—encompassing the planning, development, construction, operation, and monitoring of solar plants—is particularly impressive. According to Scope, this ensures that value creation remains under one roof.

Third, the comprehensive track record leads to a significantly reduced risk of asset lock-in. hep’s track record consists of the construction of more than 800 megawatts-peak of solar capacity across 42 solar parks and a steadily growing project pipeline currently totaling around 5.3 gigawatts-peak. 1 The total revenue expected from market values for so-called late-stage projects alone amounts to over 500 million euros by 2025. The acquisition of the U.S. project developer Peak Clean Energy (now hep Peak Clean Energy) and the majority stake in the solar company ReNew Petra (now hep Petra) in 2020 also support this.

A fourth positive factor cited was hep’s consistently strong track record. The 27 project development exits completed between 2009 and 2018 generated an IRR of 8% to 25% per annum. The alternative investment funds (AIFs) for retail investors are also on track. Furthermore, the successful placement of the €25 million hep Green Bond in May 2021 is a positive factor.

Success in Sales: hep’s Solar Funds

hep offers AIFs with varying risk-return profiles that invest in the late stages of project development, construct photovoltaic plants, and operate them over the long term. The fact that the funds have direct access to hep’s 5.3 gigawatt-peak project development pipeline is unique in the German investment market and has proven extremely successful. For example, the public AIF “HEP – Solar Portfolio 2 GmbH & Co. geschlossene Investment KG” has raised approximately 23 million euros since the beginning of the year, more than half of its target volume of 40 million euros.2 In addition, the special-purpose AIF “HEP – Solar Projektentwicklung VII” was closed as of April 30, 2021. With a placement volume of 51.9 million euros, a strong signal was sent regarding solar investments.

1 As of: March 31, 2021
2 As of: August 26, 2021