Renewable Energy Deals: Evolving Opportunities for M&A and Private Equity
Held on Thursday, Oct. 18, 2012 - 2 p.m. EST
Global investment in renewable power and fuels hit $325 billion in 2011--almost 6 times higher than 2004 levels and almost 90% higher than 2007, the year before the financial crisis hit. Of that total, M&A and private equity transactions represented $73.3 billion, posting compound annual growth rates in excess of 30% since 2004. As deployment costs of renewable energy fall rapidly, corporate and financial investors are becoming much more comfortable with this dynamic and vibrant sector's risk profiles. On the face of it, times look good for renewable energy dealmakers, but you need to dig deeper to understand the full scope of the opportunity and the potential investment and transaction traps this multifaceted industry presents.
Threats to dealflow and investment have increased. Legislative deadlock and austerity demands in developed economies are weakening support for renewable policies. Sovereign debt crises have hobbled banks and their ability to finance deals. A decelerating global economy may have tempered investment growth rates, but the opportunity is still considerable, which raises some key questions. Which renewable energy assets will garner the most deal interest in 2013 and why? Which regions of the world will be the most attractive for investment and from which countries are new acquirers and investors likely to emerge? What types of institutions will be the most active in acquiring renewable energy assets? What will be the state of the financing markets and which sources offer the most promise?
On Oct. 18, with the help of leading renewable energy investors and M&A advisers, we'll aim to answer these and other critical questions facing dealmakers as they prepare for 2013. After just 60 minutes, listeners will have a refreshed perspective on the direction in which the market is heading and a better understanding of the key investment and transaction criteria required to maximize returns.
The Deal LLC
Marcus focuses on legal issues raised by corporate transactions. He
writes about the structure of merger agreements, Delaware law cases and
developments, and cross-border M&A. He also regularly writes
profiles of M&A lawyers and bankers.Expert panel:
Marcus has been a
reporter at The Deal LLC since its launch in 1999. He has also been the
senior writer on Corporate Control Alert -- The Deal's journal of legal
and financial trends in dealmaking -- since 1997.
Denham Capital Management LP
Justin DeAngelis is a director at Denham Capital Management LP, responsible for origination, analysis, structuring, valuation and execution of investments in the power and renewables group, and brings 16 years of experience to the firm. Prior to joining Denham Capital, DeAngelis was a director at Waypoint Energy LLC. Previously, he was a manager at Pace Global Energy Services and National Energy & Gas Transmission Inc., after serving as an engineer at Conectiv Energy. DeAngelis received a bachelor's of science in mechanical engineering from Drexel University and a master's of business administration from LeBow College of Business at Drexel University.
Jarett Carson, Jarett Carson has been investing and advising on investments in energy and clean energy companies and projects for 10 years.
Prior to joining EnerTech, Carson was a Partner at Sound Energy Partners, an energy focused hedge fund group where they launched one of the first alternative energy hedge fund products. The Sound Energy Alternatives Fund invested globally, in public and late-stage-private companies in the alternative energy sector. Previously, he was Director, Energy Technology Research, at RBC Capital Markets, which he joined in 2000 to cover the oil and gas industry. In 2001 he launched RBC's efforts in energy technology research and was responsible for advising public and private market investment managers and companies in the sector. Prior to joining RBC, Carson worked six years in various engineering and project management positions in upstream oil and gas, refining and chemicals - the final four with Chevron.
Carson received his BS in Chemical Engineering from Louisiana Tech University and his MBA from the A.B. Freeman School of Tulane University.
Jonathan Melmed is a partner in the New York corporate group. He serves as head of the firm's New York private equity practice. Melmed represents private equity funds and their portfolio companies, hedge funds, corporate clients and investment banking firms in M&A and complex corporate transactions. He has extensive experience in the cleantech, alternative energy, infrastructure, media, telecommunications, and life sciences sectors.
Significant clients have included, among others, Strategic Value Partners, OMERS Private Equity (USA), EnerTech Capital, BMO Capital, Morguard Corporation and Harbinger Capital Partners. He has also represented numerous companies and investment banks on U.S. securities transactions, including initial public offerings, as well as both public and private debt offerings.
He received an LL.B., with Distinction, Dean's Honour List, from McGill University, Faculty of Law (1998); a B.C.L., with Distinction, Dean's Honour list, Faculty of Law, from McGill University (1998); and a B.A., with Great Distinction, Dean's Honour List and James McGill Scholar, from McGill University (1994). Melmed speaks English, French and is conversational in Hebrew. Melmed is admitted to practice in New York (1999) and Québec, Canada (2006).
RBC Capital Markets
Andrew has over 13 years of experience financing energy businesses, including Power & Utilities, and Natural Resources companies, with a strong focus on below investment grade credits and project finance, as well as M&A and equity capital markets. Prior to joining RBC, Mr. Rosenbaum's previous investment banking experience was as a Senior Vice President at Lehman Brothers, where he worked for 8 years.
Mr. Rosenbaum earned a Masters Degree in Business Administration from NYU's Stern School of Business, and a Bachelor of Science Degree in Political Science from the United States Coast Guard Academy. Prior to starting his career in finance, Mr. Rosenbaum served as a commissioned officer in the United States Coast Guard.
Recent notable financings include a $665 million financing for IFM's Essential Power, a $1.25 billion refinancing for Natural Gas Pipeline Company of America (NGPL), a $115 million financing for Primary Energy, a $750 million financing backing Highstars' acquisition of the Arlington Valley and Griffith assets from LS Power, a $210 million financing backing RiverStone's acquisition of Morris Energy, and a $115 million project financing for the Cadeville Gas Storage Facility.