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Renewable Energy

Energy is only one among many areas of investment
As stated before, energy is one of the most important areas of investment but certainly not the only one. Desalination, waste to energy, carbon capture, more resistant  and more productive seeds, heat-insulation, pollution reduction and millions of other projects need funding along with what else is needed (buildings, bridges..).

We find it very likely that the largest part of these investments will be allocated in the alternative assets market. There is the flexibility to accumulate large amounts of capital to fund projects like solar or wind power, geothermal energy, biomass plants and biotech research.

The industry is already building but we are just at the beginning
The industry is already building. Large insurance companies, for example, already have sophisticated specialist departments for “green” investments in their private equity divisions. Specialist funds invest in wind and solar and offer private and professional investors to partake in the returns. This macro-trend, so we believe, is just picking up momentum and the current environment may, ironically support this.

A lack of bank-lending could be an impediment
On the negative side, we are mostly concerned about a potential dearth of senior debt capital. We already notice that regular lenders, for obvious reasons, don't have the risk capital to extend new loans. On the other hand, we increasingly see new kinds of senior lenders in the market: Pension funds and insurance companies.

Uncertainty of legislation may be even worse
Past government incentives to foster the development of national know-how and to achieve renewable energy proportions in the energy-mix have been quite generous, possibly too generous. As a result, capital allocation may have been suboptimal. Now, where the sovereign debt crisis has entered governmental awareness, the wheels are turned back leaves the industry in disarray.

At the same time, governmental targets regarding the energy mix remain and decisions like Germany's to shut down nuclear power in ten years require alternatives. We find it therefore very likely that other, hopefully more efficient and thought through policies will be applied that, again, provide incentives to invest in renewable energy.

We explore other environments where natural and legal conditions are conducive to renewable energy investments
However, renewable energy investments remain highly attractive investments, particularly at times where government bonds are no longer risk-fee and offer negative real-income. As capital travels at infinite speed it can find other havens where natural and legal conditions are conducive to renewable infrastructure investment. For example, we currently explore investment opportunities in Scandinavia, CEE and the USA.

We broker PV infrastructure of various stages internationally
Within the realm of renewable energy we currently work on different types of assets and in different stages of their development. In photovoltaic infrastructure (PV) we are engaged in broking development rights and broking near finished to on-stream installations in Germany, Italy and Spain.

…and provide senior debt from various sources for PV and wind infrastructure
On top of providing equity investors in PV we, as well, arrange senior debt for development and the on-stream phase. Our activities in wind-energy infrastructure are not too dissimilar. In contrast to PV we mostly only engage when the project development is practically finished and about to go on-stream. From that stage onwards we provide equity and senior debt investors.

We are active in secondary markets
Apart from these regular processes we constantly look-out for “secondary” opportunities e.g. buying installed assets out of distressed companies or funds at discounts to fair value.

While we are open for all thinkable renewable energy projects we have so far mainly dealt with PV, wind, biomass plants, “waste to energy” and biogas deals. We are very interested to provide capital to new technology developments or expansion capital for all viable ventures.

Renewable Energy

BP energy outlook
Asset Classes Corporate Venture Capital Fund Renewable Energy Real Assets Commercial Property Residential Property Agriculture