Financial Institutions & Investment Funds

Traditional and New Energy Investments

The composition of U.S. and global energy generation, transmission and distribution markets has changed dramatically in the last decade and continues to do so.  Biofuel, carbon sequestration, waste-to-energy, energy efficiency, "clean tech" and other novel technologies join traditional sectors such as oil, gas, coal, nuclear, wind and solar as energy investment opportunities. 

Besides direct investment in projects, the rise of carbon and greenhouse gas emission offset trading in Kyoto markets and the nascent U.S. voluntary markets has established new energy project structures, as well as the potential for secondary markets involving securitization, commodities and financial derivative products with unique attributes, risks, and potential returns.

There is real money to be made for investors and traders who understand the opportunities. 

With these changes, new investors are entering the market.  Once the sole provenance of a small cadre of global investment and project finance banks, the energy sector now sees tremendous participation by hedge, private equity and venture capital funds of all sizes and strategies.  In addition, as “disruptive” energy technologies emerge, venture capital firms are stepping up their stakes.  Novel securitization and fund of funds products put positions in traditional and alternative energy projects within reach of retail investors as well.

How will you conduct relevant and actionable research and due diligence on potential investments?

Which technologies and sectors have the greatest potential for sustainable returns (and on what magnitude) and which might see their business models eviscerated by regulation or other risks?

How can you influence the policy discussions that will open new markets and/or protect your investment in others?