Our strategy is to invest across the energy value chain, where strong fundamentals and well-structured contracts can generate durable cash flows.
We focus on three investment settings:
Ownership is guided by policy, not deadlines. We hold investments as long as they deliver attractive returns, unless capital can be redeployed to higher-value opportunities. Performance is monitored continuously to ensure sustained value creation.
We typically enter at early or growth stages, drive operational improvement, and exit when the asset matures or returns begin to decline. At every stage, we apply strict risk tests. If technology lacks proven scale, if contracts are not bankable, if permits or land rights are uncertain, or if coverage ratios weaken under stress—we restructure the terms or walk away.
We invest with a focus on cash flow resilience and valuation discipline. Debt service capacity is analyzed with precision, emphasizing coverage strength and covenant durability. Typically, we underwrite a DSCR between 1.3 and 1.5 times, depending on the asset’s maturity and volatility, and we track fixed charge coverage ratios to capture long-term obligations such as leases.
Every model is stress-tested against downside scenarios in energy prices, interest rates, and foreign exchange. Even under pressure, covenants must hold, and liquidity buffers must remain resilient.
Entry valuations are grounded in regional trading and transaction benchmarks, EV/EBITDA, EV per MW, or $/bbl/d, and supported by conservative DCF models and realistic terminal assumptions.
Risk management is built into our investment process, not treated as an afterthought. If audited financials cannot be verified, counterparties fail our due diligence screening, technology lacks proven local references, or key contracts are unenforceable, we walk away. Where risks can be managed, we use smart structuring tools, earn-outs, staged payments, step-in rights, and reserve accounts to balance risk and reward.
We maintain board representation and establish clear reserved matters across budgets, capital expenditure, financing, and M&A, ensuring disciplined, transparent decision-making at every stage. When appropriate, we also second seasoned executives into our ventures to strengthen leadership and ensure assets are managed to the highest standards, unlocking their full value potential. Management incentives are directly tied to measurable value creation, aligning performance with long-term results. Financial statements are audited, internal controls are continuously strengthened, and reporting is delivered with clarity, consistency, and transparency.
Compliance is absolute. AML/CFT policies, sanctions screening, and enhanced due diligence for suppliers, customers, and financial counterparties are embedded into onboarding and refreshed regularly. These measures go beyond prudence, they enhance bankability, build investor confidence, and minimize tail risks that can erode years of compounding value.
We avoid businesses vulnerable to near-term technological or regulatory disruption unless credible mitigation measures are in place. Any opportunity that fails to meet environmental, CCUS, or HSE obligations, or that does not align with UNFCCC commitments, is declined without exception. We step back from companies that have exceeded their maturity curve or entered structural decline without a viable transformation plan. Financial opacity is a definitive stop if audited accounts, reconciliations, or diligence findings lack integrity, we disengage immediately.
Compliance is non-negotiable. We reject any exposure to money laundering risks, sanctioned entities, or opaque ownership chains. Likewise, we avoid projects built on unproven industrial technologies unless robust safeguards OEM guarantees, performance warranties, liquidated damages, and phased commissioning secure delivery and accountability. We also steer clear of currency or tenor mismatches that could turn operational volatility into covenant stress. These guardrails protect our partners, lenders, and reputation, ensuring capital is deployed only into ventures that create lasting value and compound performance through cycles.
