This article appeared in Signal, a capital markets service, at 2:55 p.m. on August 19, 2026.
Private equity fund (PEF) manager No & Partners will acquire a minority stake in SGC Green Power, a renewable-energy generator. Related investment is picking up as a growing number of companies free up capital by selling stakes in power-generation subsidiaries to bolster their artificial intelligence (AI) businesses.
The SGC Group has named No & Partners as the preferred bidder for a 49% stake in SGC Green Power, according to investment banking (IB) sources on the 19th. No & Partners has begun due diligence, aiming to sign a share purchase agreement (SPA) within the year. The deal is valued at around 200 billion won ($145 million). SGC Energy, a district-energy company that holds a 95% stake, is currently the largest shareholder of SGC Green Power. The SGC Group plans to channel the proceeds into new businesses, including the construction of data centers.
Founded in 2014, SGC Green Power is primarily engaged in biomass power generation, which produces electricity using organic materials such as wood. It generates 100 megawatts of electricity in Gunsan, North Jeolla Province. Amid a policy stance that encourages renewable-energy use, the company posted revenue of 181.1 billion won and operating profit of 18.5 billion won last year. Power generators typically produce stable cash flows because they sign long-term contracts with customers and apply rates linked to inflation.
The SGC Group's shift to selling a minority stake rather than the entire business is seen as an effort to maintain its renewable-power portfolio. Its main affiliates include SGC Energy, SGC Solution (glass), SGC E&C (construction) and Westside Logistics (logistics). Retaining management control of SGC Green Power is advantageous for expanding SGC Energy's renewable-power business.
Minority-stake investments in energy infrastructure firms have been coming one after another in Korea. STIC Alternative Asset Management and Korea Investment Private Equity agreed early this year to acquire 49% stakes in Ulsan GPS and SK Multi Utility, power-generation affiliates of the SK Group, for 1.5952 trillion won. The SK Group also plans to sell a 49% stake in its Ulsan AI data center (SK AI DC) business to a consortium of Kohlberg Kravis Roberts (KKR), IMM Investment and Stonebridge Capital for about 3 trillion won.
For PEF managers, investment in power infrastructure carries relatively low risk because it generates steady cash flows. Analysts say fund managers are opting for risk-minimizing strategies as industries broadly feel the effects of the AI transition and an uncertain macroeconomic environment persists. "Holding a minority stake in a power-infrastructure firm that generates steady cash flows lets you recover your investment through stable dividends," an IB industry official said. "It is hard to predict how the industry landscape will shift with advances in AI technology, so minority-stake investment in infrastructure is likely to continue for some time."
