Investment Focus
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Cleantech is a theme that underlies several large global industries that exhibit accelerating demand for innovation and investment. Several Cleantech industries – such as energy, water, and waste management – characteristically enjoy inelastic demand, limited competition and long-term price growth. It is our belief that the solutions to our most pressing energy and environment problems can only be solved by new technological breakthroughs. As a result, the Cleantech industry represents an attractive area for private equity investing. A combination of market forces are propelling demand for sustainable solutions, creating very favorable conditions for innovative startups in the Cleantech sector. These include rising energy consumption, global prosperity, volatile energy prices, ecological disruptions, and a groundswell of popular and political support in favor of Cleantech solutions. While we do come across business models whose economics are enhanced by favorable regulatory regimes, we favor those businesses that offer compelling value proposition to the markets without relying on the economic crutch afforded by government regulations. |