C I
Mimai, FL (USA)
Role(s):
C-Level Executive (CEO, CFO, etc.)
C I M
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Startup
Location:
Miami
Industry:
Energy
Year Founded:
2010
Number Employees:
1-10 people
Business Stage:
Growth (profitable)
Entity Type:
Limited Liability Company
Description:
Investment opportunity
A leading Private Equity would like to offer an exciting way to invest in power, energy, hydrocarbon, solar wind power, biomass and biogas, energy-efficient products, LNG (liquefied natural gas) terminal, and recycling waste into products in South East Asia. It leverages its investment expertise, plant development experience, close relationship with the government leaders, government officials and business leaders to provide annual returns in excess of 25% per year to the partnership over 3-5 year holding periods. Invest with an experienced management team in a vertically integrated partnership which will benefit from institutional profit sharing and a shorter term return of capital.
The peak hour demand is more than 5,500MW of electricity while the country currently produces approximately 3,700 MW of electricity. The electricity demand has been growing by 7.5 percent annually since 1990. 40 % of the 160 million populations have access to electricity. The government needs investment of about $9.5 billion in the next five years for generation, transmission and distribution of power and has set a target to generate 7,000 megawatts of electricity by 2013 and 20,000 megawatts by 2021.
The power plants are built as an independent power producer with a15 year power purchase agreement with the government. The plants are being built as medium speed diesel plants focused on the operation at 95% of rated. They are well located and well positioned near the grid for easy power transmission. Value added by installing a 165 MW nameplate where requirement is 150 MW + 10% and improving emission by installing FGD to meet the WB guidelines. A five year O&M contract with renewals is standard to ensure commitment from EPC contractors. The development company was formed in February of 2004 by former senior executives of Enron Corp & El Paso Energy Corp to bring together the unique knowledge base of those senior executives from the perspective of their corporate experience in the development of power plant infrastructure on a global scale. Services provided are power plant conceptual & detailed engineering design in multiple fuels, high voltage interconnection grid studies. Pipeline and electric transmission line design and construction.
Manager’s Experience is a versatile executive management team with over 175 years of experience in development of energy projects, international fund management, venture capital fund management, M&A, legal and tax compliance expertise in global energy infrastructure projects and research in venture capital and private equity organizations. Also, experienced in asset class management, energy plant construction and O&M, value enhancement and the disposition of $6B in transaction experience. Vertically integrated management team is made up of experienced executives who have operational and maintenance experience. And focuses on infrastructure operations and value enhancement vs. just capital allocation. Single profit promotes institutional terms and is designed for institutional and foreign investors.
The Investment objective is to raise up to $150M of equity and/or debt with a minimum gross returns of 25% per year at the property level with the goal of netting investors 20% per year or more over the life of the Fund. Benefit from a “portfolio strategy” that all capital is returned to investors after a 12% preferred return and before the Manager shares in any profits. Projected to return a minimum the of 25% per year and 2x on equity. Term is 5 years, with up to two one-year extensions. Minimum investment is $500,000. Senior Debt is 18% return per annum subject to earlier acceleration or repayment. Preferred Return of 10% simple non-compounded annually up to five years.
Exit Strategy is to sell the plants once stabilized and NOI has increased to earn total dollar profit where all offers are considered and potentially sell early if a large percentage of total projected profit has been achieved. Corporate rollup, portfolio sale or individual sales will be considered to achieve highest total profit.