Institutional investors, high net worth private clients, and foreign investors are increasingly interested in building a clean energy future. They are exploring how to invest directly in renewable power projects. Developers also seek new financing partners, especially for smaller projects with less than $50 million in capitalization.
Historically, only a few very large institutions invested in renewable power projects. Tax-exempt institutional investors and private client individuals were not able to make efficient use of the federal tax benefits that form an important part of the returns to project investors. Changing tax incentives, technology cost reductions, and emerging investment vehicles are creating new investment opportunities.
Many institutional, foreign, and private client investors lack experience or staff to form a clean power investment strategy or to consider individual projects. Instead, they engage independent advisors, invest through project funds, or partner with project developers.
Birch Tree Capital is a renewable power finance subject matter expert. We can help such investors and their fund managers and advisors to:
- Craft sector investment plans to meet an investor's risk profile and appetite.
- Find developer partners and individual project investment opportunities.
- Conduct initial "fatal-flaw" reviews of possible investments.
- Construct financial models and conduct sensitivity & uncertainty analyses.
- Prepare financial modeling of partnership accounting.
- Oversee detailed due diligence reviews.
- Coordinate specialized legal, tax, insurance, permitting, and contract analyses.
- Negotiate equity letters of intent and definitive agreements.
- Review other equity and debt financing commitments to ensure consistency with the investor's risk profile and sector strategy.
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