Highly experienced entrepreneurs and private equity specialists dedicated to managing the different private equity vehicles, which will benefit from the deal flow and expertise of Akuo Energy, contribute to the creation of AKUO INVESTMENT MANAGEMENT.
Akuo Energy focuses on sourcing opportunities leading to the development of renewable energy, as well as on effectively building renewable energy plants. The company has been created by repeat entrepreneurs, who already developed and rewarded their investors with high returns in different ventures, most recently in a company in the wind energy business, namely Perfect Wind.
The Akuo Energy team has a fine balance of entrepreneurship, finance and engineering. The company’s daily operations and project execution is led by a team of engineers with skills in contracting mega-projects, managing complex development projects internationally and operating energy plants. The team also benefits from the leadership of several key individuals with an immense amount of experience and a proven track record in project financing and effective setup financial operations.
A portfolio of equity stakes in plants using proven technologies, at a stage where legal, environmental and industrial risks are cleared.
The Funds are not yet another so-called Cleantech funds, i.e. the team will only develop deals on energy plants integrated into the energy matrix of the concerned regions using the latest proven technologies, and does not intend to invest in technological innovations per se. For example, Akuo Energy has worked up to now with various multinational equipment suppliers for its wind farms and solar projects, focusing on optimizing the value of each project, leaving not engineering, but technology issues to the experts…
Although Akuo Energy will offer its expertise and deal flow, it has only retained a minority stake in the Manager in order to ensure proper independence of judgment and operation of the management team in charge of the investment vehicles.
A perfect timing.
It was a buzz, it is now a must. Interest in renewable energy has erupted because of greater environmental awareness, growing evidence of climate change, the scarcity of petroleum, and an increasing commitment by Western governments to support new sources of energy. Underlying technologies are now mainstream and the industries have clearly moved away from experimentation.
Akuo Energy has always led change on solar and wind energy projects, being a first mover. Akuo Energy has led and financed the first significant wind farm project in France, Ally-Chamlonges (57 MW). Similarly, in Turkey the team anticipated its installation before the setup of national Feed-in tariffs giving it a lead and owning 25% of permits. In solar, Akuo Energy has set up the largest French photovoltaic roofs. The company seeks to be first moving from a geographical perspective as well as from the point of view of the energy generation category, in order to maximize the opportunity and returns.
An attractive asset class for investors seeking higher profile growth industries due to long term feed-in tariffs (PPA’s Power Purchase Agreements) and therefore foreseeable cash flows.
Akuo Energy’s team consists of a set of experienced practitioners; it avoids common pitfalls from mainstream project finance circles. Awareness among investment bankers of the potential for carbon finance-related risks and opportunities to affect project economics is limited.
Accordingly, the inclusion of relevant information in documentation used during the capital raising and loan syndication processes is also sometimes inadequate. These aspects will always be analyzed and never be the main drivers for investment and treated as a potential bonus. To put it simply, focus is given to the cash flows generated by the operations of the plant.