Strategic investors invest at various stages in the development of renewable power projects. They need to understand the underlying risks and potential rewards of investing at each stage and which stage meets their risk profile.

Project investment opportunities have proliferated. Developers specialize in specific energy technologies, e.g., wind, solar, or biomass. Towns and cities facing budget constraints seek private sector capital to finance public-private project partnerships. Investors need to consider risks that vary with the project size, technology, off-takers, locations, and financial structure.

Investors can profit by creating a coherent investment strategy and by understanding the needs and goals of developers. Birch Tree Capital can help investors sort through the opportunities:

• Design and implement investment strategies to streamline the search for suitable market segments, developer partners, and projects.
• Identify individual investment prospects meeting an investor’s criteria.
• Conduct initial “fatal-flaw” reviews of investment prospects.
• Review financial models of specific project investments.
• Negotiate equity letters of intent and definitive documentation.
• Facilitate and/or oversee detailed due diligence reviews of specific projects.
• Identify and coordinate other transaction advisors, e.g., legal counsel, independent engineers, insurance experts, tax valuators.
• Review purchase agreement and documentation to ensure consistency with the goals of the developer and needs of the equity.
• Identify and assist in securing additional equity, construction, and/or term debt financing to round out the financial plan.