The general partner further intends to focus up to

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: h the General Partner believes to have established revenues, good management, long term competitive advantages, a large market potential, and that are expected to provide a profitable exit opportunity within 4 to 7 years from the date of investment. Although the Partnership has a preference for profitable companies, it may also invest in companies that are not yet profitable. The General Partner intends to invest up to approximately $15 million in such companies (including follow on investments). The General Partner further intends to focus up to approximately 5% of the Aggregate Capital Commitments on investments of approximately $250,000 to $1,000,000 in very early stage or pre-revenue companies. These investments will generally be made in companies that the General Partner believes to have excellent growth prospects and management. Overall, the General Partner intends to create a portfolio that is generally diversified within the Environmental Sectors in Canada. However, such diversification may be limited to certain of the Environmental Sectors when the General Partner believes it is in the best interests of the Partnership. The General Partner may co-invest in companies with related entities and third parties (See “Summary of the Partnership Agreement – Co-Investment Policy). Any such co-investment shall be done with due consideration of any recommendations of the Advisory Committee. -6- OVERVIEW OF THE ENVIRONMENTAL SECTORS The Partnership intends to primarily invest in the Environmental Sectors in Canada including: • • • • Renewable Energy Water Sustainable Agriculture Clean Technologies The General Partner expects the Environmental Sectors to grow rapidly primarily due to three long term macro-economic forces: • • • Resource scarcity Population growth, and Increasing environmental stresses. The General Partner believes that these three forces are causing major disruptions to the global economy and are creating significant investment opportunities. Basic commodities such as energy, food and clean water are expected to become increasingly scarce and expensive over the next 25 years, and companies with more resource efficient or cleaner technologies and processes, or companies that produce environmentally superior products and services, should be well positioned to outperform those that do not. The potential demand for capital investment in the Environmental Sectors is significant. For example, annual investment of at least $500 billion is required in the renewable energy sector to ‘decarbonise’ global electricity generation as called for by the Stern Review on the Economics of Climate Change1. Major investments are also required in water infrastructure, which has been neglected for decades, to reduce infrastructure leaks and to improve infrastructure2. In fact, it has been estimated that the global need for water and other infrastructure investments is more than $1 trillion annually3. If the wide range of investments needed to improve efficiency in resource utilization (e.g. metering, insulation, monitoring and control, recycling technologies, etc.) is included, the General Partner believes that the Environmental Sectors could account for $2.5 trillion in investment per year by the year 2030, even before accounting for growth in the sustainable agriculture sector. Growth in the Environmental Sectors ($US Billions) $300 Data Sources: IEA is International Energy Association, World Energy Outlook 2006; SolarBuzz, MarketBuzz 2008; Vestas, Annual Report 2006 IPCC, Intergovernmental Panel on Climate Change, Special Report on Carbon Dioxide Capture and Storage, 2005 “Stern Review on the Economics of Climate Change,” October 2006. Booz Allen Hamilton “Lights! Water! Motion!,” Strategy and Business, Spring 2007. 3 Booz Allen Hamilton “Lights! Water! Motion!,” Strategy and Business, Spring 2007. 1 2 -7- Renewable Energy The General Partner believes the potential for growth in the renewable energy sector is very significant. Globally, it is estimated that $45 trillion must be invested in energy infrastructure globally to reach the target set by the Intergovernmental Panel on Climate Change (IPCC) to cut greenhouse gas emissions 50% by 20504. It is further projected that the share of global energy production represented by renewable sources such as solar, wind, and hydro energy will have to more than triple to reach this IPCC target5. Because of such potential growth, the General Partner believes that the renewable energy sector is well positioned to continue to experience very significant growth in the coming years. Examples of potential target renewable energy investments include: • • • • • • • • • • • • Solar-photovoltaic/thermal technologies and products Wind-products/technologies/power producers Biofuels-wood/agricultural and organic waste Independent power producers Commercial/industrial/residential energy metering Battery/energy storage technologies Power electronics Hydroelectric technologies Demand response E...
View Full Document

This document was uploaded on 02/19/2014.

Ask a homework question - tutors are online