Ecosource Energy and Infrastructure Investment Fund
Ecosource has secured worldwide exclusive access to a £1.5bn offshore private investment fund with a special appetite for energy generating assets.
The fund is seeking diverse equity investment transactions from £1m upwards with no fixed upper limit, although investments over > £100m will need to be of a unique quality.
General investment criteria:
1. A credible and experienced management team – this is the prime imperative
2. Particular appetite for, but not limited to; energy, manufacturing and infrastructure
3. Preference to fund established companies seeking growth capital
4. Distressed business requiring cash to turn around could be very attractive
5. Location – worldwide except; Africa, politically unstable countries and any country experiencing current conflict
6. Ideal investment term 3 – 5 years
7. Minimum forecast annual return > 15%
8. No property and construction (at this stage) or warfare products
9. No start-ups, with the exception of asset-backed start-ups (for example renewable energy or infrastructure projects)
10. No pharmaceuticals, unless the products already has license approval
11. No Funding for early stage development of technologies or prototypes
The Application Process
As this is a personally administered fund, the decision process is far quicker and more straightforward than for institutional funds. The process works as follows:
1. Based on the known criteria of the Fund Ecosource will provide a detailed Heads of Terms which will cover the investment structure, pricing and high-level security and DD requirements, including the Ecosource fee structure for delivery of the proposed facility.
2. As part of the HOT’s Ecosource performs a first stage evaluation of the opportunity to ensure that it meets the fund’s broad investment criteria. If necessary, Ecosource will assist the Project sponsors to re-work any areas which may limit the appetite of the Fund to invest. Ecosource will ensure that the basic information required by the fund’s analysts to evaluate the opportunity is in place.
3. The information is then passed to the fund for their initial consideration. We would expect an initial expression of interest, or otherwise, within a week of submission.
4. If the fund decides to move to the next stage, there will follow a request for further information and one or more conference calls before the fund decides whether or not to issue a formal memorandum of understanding (MOU).
5. If the MOU terms are acceptable there will be a requirement pay just 50% of the indicated due diligence costs with the fund meeting the balance. This payment is made direct to a third party DD practice.
6. A formal due diligence process will be undertaken, which if successful, will lead to final investment terms.
Assuming that the information required for due diligence is available, an investment decision is normally given in 8-12 weeks.