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Advanced Energy Capital

AEC INVESTMENT FOCUS

FLEXIBILITY TO INVEST THROUGHOUT THE CAPITAL STACK

Regardless of where AEC GFS invests in the capital structure, the dependability of income and profits is based upon strong due diligence – both upfront and ongoing.

AEC’S INVESTMENT PROCESS

AEC utilizes a disciplined investment process to identify, analyze and manage potential investments.

  • Leverage AEC’s extensive relationships, as well as the origination capabilities of strategic partners
  • Identify renewable energy and/or energy efficiency investment opportunities which meet our investment criteria
  • Perform extensive due diligence to confirm potential investments meet AEC’s cash flow expectations, investment criteria, portfolio diversification standards, and risk-adjusted return guidelines
  • Present investments to investment committee for approval.
  • Employ analytics to track and monitor portfolio investments
  • Ensure consistent, predictable operation of firms we finance
  • origination
  • regorous screening
  • Disciplined risk management
  • active portfolio management
  • AEC’s disciplined investment process will identify, analyze and manage potential investments.
  • Features
    • Highly Selective Investment Decisions
    • Emphasis on Capital Protection
    • Detailed Portfolio Monitoring
    • Focus on Return of Capital First

ORIGINATION

  • origination
  • regorous screening
  • Disciplined risk management
  • active portfolio management

Experienced Investment Team

  • Focus on middle market renewable projects, companies, and EE projects
  • Deal sizes between $1m and $25m
  • Rigorous screening, underwriting, and monitoring of investments

Robust Network of Deal Sources

  • Extensive relationships with Developers, Banks, ESCOs, REPs, Consultants, Wholesale Energy Suppliers, Construction Companies, Utilities, other financial investors, and other industry participants

RIGOROUS SCREENING

  • origination
  • regorous screening
  • Disciplined risk management
  • active portfolio management

PRELIMINARY SCREENING (1 WEEK)

  • Review of investment opportunity to ensure it fits investment criteria and minimum risk adjusted return requirements
  • Initial deal structuring and pricing

PRELIMINARY DILIGENCE (2-3 WEEKS)

  • Preliminary review of financial, legal, and credit analysis, project design, electricity production estimates, reports, counterparty credit analysis, etc.

COMPREHENSIVE DILIGENCE (3-4 WEEKS)

  • In depth diligence of all preliminary due diligence materials which may include site visits, third party verification of analyses and wind or solar studies, due diligence of all deal counterparties and optimization of structure from a risk, legal and accounting perspective

DISCIPLINED RISK MANAGEMENT

  • origination
  • regorous screening
  • Disciplined risk management
  • active portfolio management

BROAD DIVERSIFICATION

  • Geography
  • Asset type
  • Counterparties
  • Financial Instruments

CAREFUL STRUCTURING

  • Cash-flow modeling and contracted revenue analysis
  • Personal Guarantees where available
  • Tax return review
  • Budget analysis and review

RIGOROUS DUE DILIGENCE

  • Upfront and ongoing due diligence process
  • Systematic underwriting process
  • Third party expert analyses if applicable)
  • Careful review of borrower’s financials weekly and monthly
  • Reconciliation of all bank accounts
  • Direct verification from utilities

ACTIVE PORTFOLIO MANAGEMENT

  • origination
  • regorous screening
  • Disciplined risk management
  • active portfolio management

RIGOROUS OVERSIGHT

  • Real time investment monitoring
  • Monthly financial and cash reconciliation analyses
  • Active monitoring
  • Frequent valuations
  • 360 Degree reporting
  • Trap all cash in lockboxes to ensure integrity
  • Secure liens on all collateral where available
  • Analysis of Borrower’s corporate documents and agreements

EXTERNAL CHECKS AND BALANCES

  • Independent valuations
  • Loan servicing
  • Fund transfer agent
  • Legal
  • Audit
  • Frequent Onsite Field Exams
  • Analysis and oversight of agreements between borrower and utilities include EDI transmissions