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Overview
Objective: To seek attractive returns through investments in infrastructure and commodity projects, and maximize value for LPs via co-investments
Target Fund Size: US$15 million, maximum US$30 million
Term: 10 years – extendible by two years
Investment: Up to 4 years
Minimum Investment: $50,000 (GP may accept smaller investments at its sole discretion)
Fee Structure: 2% management fee, 20% carried interest
Legal Advisor: Alston & Bird LLP
Accounting and Audit: Grant Thornton
Opportunity
Access to projects too small for bigger funds allows us to create a portfolio of high-quality assets
Existing infrastructure assets supported by long-term contracts in areas such as, but not limited to:
Power generation and distribution – such as small-scale hydro and solar power plants
Storage and transportation of energy and other commodities
Technological innovations aimed at improving the production and distribution of commodities
Energy distribution, transmission, and storage assets
Company will look to maintain control of operating assets
The position will be structured to support current and expanded operations while not weighing down balance sheets and draining cash flow
Keep staff’s skin-in-the-game with performance-based bonuses
Incentives provide for superior efforts driven by cash and stock rewards
Investments through preferred stock, convertibles, or bond structures to provide operational flexibility
Board seats for any positions larger than 3% of fund
Solution/Strategy
Several “run-of-the-river” plants that have been operating for decades
Capex to improve or replace existing infrastructure, oft-neglected by owner-operator
Some plants in FERC relicensing give upside potential from adding experienced operator
Potential to increase revenue from signing PPAs and net-metering agreements
Prior success increasing productivity, lowering costs and raising selling price at three New Hampshire dams
Moretown, VT Hydropower Dam
