Structuring Private Equity Funds for Investment in Renewable Energy Projects: A New Financing Option
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Banking and Finance
- event Date
Wednesday, June 14, 2017
- schedule Time
1:00 PM E.T.
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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This CLE course will provide finance and energy counsel with the tools to structure a private equity fund dedicated to investment in renewable energy projects. The panel will discuss the advantages of the private equity model, and the ways in which energy private equity (EPE) funds are similar too and different from traditional private equity funds.
The emerging trend of EPE funds is revolutionizing the renewable energy field. Energy sponsors are increasingly eschewing the traditional project finance structure, in which investment partners and financing are sought for each deal, in favor of a fund structure in which committed capital is deployed by the sponsor in accordance with a specified investment strategy. Private equity has proven to be a more efficient and cost effective way for renewable energy companies to obtain capital.
This trend can be seen as evidence of renewable energy maturing as an asset class. Since EPE funds are relatively new, their terms vary. However, there are some concerns common to EPE funds which distinguish them from traditional private equity funds. Provisions must be tailored for renewable energy investment regarding capital raising, investment strategy, carried interest and management fees, distribution structure, and investment period.
Counsel to renewable energy clients should have a working knowledge of private equity as a finance option, and private equity counsel should understand the structural nuances of an EPE fund.
Listen as our authoritative panel discusses the advantages of private equity over other financing options for renewable energy projects, and the similarities and differences between EPE and traditional private equity funds. The panel will also discuss the ways in which tax credits, regulatory compliance, and other aspects of renewable energy investment should be addressed in EPE fund documents.
- Advantages of private equity over one-off renewalable energy investment structures
- Incorporating tax credits and other incentives
- Comparison of EPE to traditional funds
- Committed capital
- Investment strategy
- Carried interest and management fees
- Distribution structure
- Fundraising period
- Investment period and fund term
- Governance
The panel will review these and other key issues:
- How is private equity preferable to existing project finance structures in renewable energy?
- What issues are unique to renewable energy as an asset class?
- How might fundraising, investment strategy, partner consent, and investment period differ in an EPE fund?
- Are current tax credits and other incentives still available in the EPE fund structure?
