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Description:
Climate Change Ventures is a London-based private equity firm that invests exclusively in the renewable energy sector in Latin America. CCV’s strategy is to acquire a significant portfolio of renewable energy-related companies, projects and joint ventures. The firm aims to achieve superior risk-adjusted returns through selective monetisation of assets and well-planned exit strategies.
The current transformation of the energy and power industry is creating market inefficiencies and dislocations that require significant capital investment and exceptional management teams. Climate Change Ventures is a catalyst in this trend shift, playing an active and opportunistic role in the ongoing restructuring of the energy and power industry. The firm's insight, network of relationships, execution expertise and understanding of business fundamentals makes Climate Change Ventures an attractive capital source for world-class energy and power management teams.
Climate Change Ventures believes renewable energy in Latin America represents an attractive investment opportunity, driven by a convergence of long-term trends. These include:
- Accelerating electricity demand: Rapid and sustained economic expansion and population growth has driven an unprecedented increase in electricity demand which is forecast to accelerate;
- Historic under-investment in electricity infrastructure: Despite significant demand for electricity, lack of investment in power generation and transmission infrastructure has created a considerable current and widening electricity demand-supply gap in several Latin American countries;
- Renewables ideally positioned to help meet demand: Renewable energy is a cost-effective, reliable and non-polluting solution, enabling large untapped renewable resources to be exploited;
- Legislative support for clean energy solutions: Increasing public and private sector focus on climate change is manifested in international and national regulatory and fiscal incentives supporting the development of renewable energy projects.
Climate Change Ventures believes the convergence of these drivers is most apparent in Brazil where it intends to focus a majority of its investment activity. The scale of the opportunity is supported by an attractive power market structure, and maturing regulatory and fiscal incentives for renewable energy.
