Latin Power Iii – Ppm

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Latin Power Iii – Ppm

  1. 1. LATIN POWER III – PPM Group 4 Navin Bafna Sajeev Rao Hardik Doshi Preet Sabharwal
  2. 2. Investment Strategy <ul><ul><li>Investment in Independent power Projects In Latin America & Caribbean </li></ul></ul><ul><ul><li>Investment in US Treasury instruments, bank CD’s or other suitable Instruments for cash management purposes. </li></ul></ul><ul><ul><li>Up to 10 % of the sum of the aggregate Managed Capital may be invested in </li></ul></ul><ul><ul><ul><li>Without the consent of the advisory board in the territory but the company should be in energy sector. </li></ul></ul></ul><ul><ul><ul><li>With the consent of the Advisory board, in any other company. </li></ul></ul></ul><ul><ul><li>No single investment would be greater than US $25 million or 15% of the Aggregate Managed Capital. </li></ul></ul><ul><ul><li>Consent from Advisory board would be required to approve investment more than 25% in any one country (or 40% in case of Brazil, Chile and Mexico) of the Aggregate Managed Capital on the date the Investment is made. </li></ul></ul><ul><ul><li>When fully invested the average investment will constitute less than 10% of the Aggregate Managed Capital. </li></ul></ul>
  3. 3. Effect the DEAL FLOW <ul><li>Members of Investment Team have been working in the same region </li></ul><ul><li>Professional relationships with Leading Power developers, Project owners </li></ul><ul><li>Professional Networks & relations with Multilateral Organizations </li></ul><ul><li>Newer opportunities in pipeline of deals from Latin Power I & II </li></ul>
  4. 4. Authority to approve deviations <ul><li>Advisory Board and in some matters the Majority vote of Limited partners </li></ul>
  5. 5. Investment limits <ul><ul><li>No single investment would be greater than US $25 million or 15% of the Aggregate Managed Capital </li></ul></ul><ul><ul><li>Consent from Advisory board would be required to approve investment more than 25% in any one country (or 40% in case of Brazil, Chile and Mexico) of the Aggregate Managed Capital on the date the Investment is made </li></ul></ul><ul><ul><li>When fully invested the average investment will constitute less than 10% of the Aggregate Managed Capital </li></ul></ul>
  6. 6. Borrowing Funds <ul><li>Latin Power III may borrow funds from third parties for liquidity purposes </li></ul><ul><li>The principal amount of borrowing from OPIC facility shall not exceed US $ 60 million </li></ul><ul><li>Shall not exceed 25% of the cost of current Investments </li></ul>
  7. 7. Defaults by LP’s – Cure Period <ul><li>A partner will be in default if the partner fails to make a required capital contribution when due and the partner fails to cure the default within 10 business days of written notice of such a failure. Upon default a partner could face consequences like: </li></ul><ul><li>Apply amounts otherwise available for distribution to the defaulting partner (from any source) toward the defaulted amount or otherwise preclude the defaulting partner from participating in distributions. </li></ul><ul><li>Cause the compulsory redemption without compensation of up to all of the defaulting partners interests. The redeemed interests will be distributed to non-defaulting partners: </li></ul><ul><li>In proportion to their respective capital commitments. </li></ul><ul><li>Any other equitable basis as the general partner determines. </li></ul><ul><li>Cause the defaulting partner to remain liable for – and reduce its Interests by – the Partner’s pro-rata share of subsequent partnership expenses and losses (if any) to the extent of its Interests. </li></ul><ul><li>Cause the defaulting partner not to share in any income or gain (other than for tax purposes). </li></ul><ul><li>Charge interest on the amount for which the Partner is in default. </li></ul><ul><li>Prohibit the defaulting partner from participating in any future capital calls. </li></ul><ul><li>Sell the defaulting partners interests on whatever terms as the general partner may deem appropriate. </li></ul><ul><li>Take whatever other actions as the General partner, may determine is necessary, desirable or appropriate. </li></ul>
  8. 8. Classification of Expenses
  9. 9. Expenses <ul><li>Hurdle Rate – 11% </li></ul><ul><li>Waterfall Rate </li></ul><ul><li>100% of partners until ROC and 8% preferred return </li></ul><ul><li>General Partner Catch up exceeding 20% over Capital contributions </li></ul><ul><li>80% to all partners & 20% to GP (carried interest distributions) </li></ul><ul><li>Aggregate on the advise of Advisory Board </li></ul>
  10. 10. Management Fee <ul><ul><li>2% per annum paid semi-annually in advance of the total capital commitments till the investment period </li></ul></ul><ul><ul><li>1.75% after investment period till maturity </li></ul></ul><ul><ul><li>1.50% if the term is extended </li></ul></ul>

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