Investor Market

 

Experience arranging equity

CTI and its alliance members have successfully completed over $5 billion in project equity, debt and M&A transactions involving the following fuels and technologies: natural gas combined cycle, coal and waste-coal fueled circulating fluidized bed, landfill gas-to-energy, hydroelectric, biomass, wind energy, ocean wave energy and coal gasification.  In the process CTI has gained deep insights into energy investor behavior.

Having had the opportunity to invest equity on behalf of former employers Dow Chemical and Combustion Engineering, CTI’s founding principal has had the benefit of having to live with the results of his decisions.  As a result, CTI has gained the reputation with investors and developers for structuring project investments that stand the test of time.

Staying on top of the market

Because of CTI's location in the New York/Connecticut area where most of the major hedge funds and private equity funds are headquartered, CTI is able to maintain an active presence in the private equity investor community.

CTI engages in a variety of activities to stay on top of the market.  Besides meeting with top energy investors to update CTI's investment profiles, CTI belongs to a number of investor-oriented organizations where senior officers meet regularly gather to share their views on the market and present the latest in structuring techniques.

Are all energy investors the same?

The large investors vary widely as to cost of funds, technology preferences, accounting constraints, appetite for tax benefits, minimum and maximum investment size, approval processes and willingness to fund development.  The result is a set of unique investors that are as different as points on a compass.  Knowing these differences in essential when taking deals to them.

Relationship investing

CTI believes in the competitive market’s ability to consistently beat what developers can achieve by relying solely on long-standing personal relationships.  Because each investor’s appetite varies widely during the year depending on where they stand versus budget, it's impossible to know in advance which investors will be able to offer the best deal.  Positioning your company to have investors (including ones you already know) compete against one another is particularly important if you want to negotiate the level of carried interest and other terms your firm deserves.

Developer orientation

While CTI has a deep appreciation for the issues facing developers and has access to a group of highly experienced development consultants, CTI does not try to be a developer.  Rather, CTI believes it can add the greatest value by leveraging experienced developers to get the most value from their projects.

Objectivity

There is a growing trend by some of the larger investment and infrastructure firms to stand ready to provide financing to the same projects in which they are advising.  We believe this makes it difficult to be as aggressive as needed when pursuing competing sources of financing.  Over the years CTI has steadfastly maintained its independence from any single financing source so that it can bring your company the best the market has to offer.

The importance of careful packaging

CTI is expert at presenting complex investment opportunities clearly and succinctly.  CTI finds that lenders and investors respond best to conservative financial projections, with all potential risks identified up-front, along with a plan for mitigating them.  CTI's reputation with investors for clarity and straight dealing helps ensure that your company's project will get the attention it deserves.