HgCapital has announced what it believes to be the largest sale by a dedicated renewable energy private equity fund in Europe, as the sector continues to gain traction.

HgCapital has sold its operating UK onshore wind portfolio to Munich Re for an undisclosed value. One person close to the situation said it was worth around £200m. It is the first sale by the firm's first renewables fund, which was raised in 2006 at €303m. The firm has since raised a second fund, securing €542m last year.