Financing Renewables
Presented by John Burges of Knight Capital at the Green Energy Act Finance Forum on Friday January 29, 2010
For more information visit http://www.marsdd.com/greenenergyforum
This document discusses 10 reasons why innovation is like surfing. It notes that disruptive forces happen where the "waves are forming" like in Silicon Valley. To harness innovation, one needs to be engaged in these innovation hubs. While watching surfers makes innovation look easy, trying it oneself reveals it is not. Factors like timing, positioning and guts are required. The document advocates getting experience in smaller waves before taking on larger disruptions. It also notes innovation is not without risks but the rewards can be huge for those who are willing to take those risks.
This document contains notes and slides from a lecture on various topics related to business modeling, disruptive technologies, and simulations. Some key points include:
1. A simulation assessed the top skills needed for model building as knowledge of the business, data, and critical thinking, while statistical knowledge and tool knowledge ranked lower.
2. Notes discuss Uber's regulatory challenges as a disruptive technology and how incumbent taxi operators responded. The document also contains slides on simulations assessing battery technology investments.
3. The slides show examples of R&D investment strategies over time for nickel metal hydride and ultracapacitor battery technologies, as well as the profit contributions of each.
4. Disruptive innovation frameworks are discussed
The document summarizes an interview discussing ways to improve the yieldco model of financing renewable energy projects. It finds that yieldcos should focus on improving operating cost structure, driving down development and construction costs through synergies with developers, and enhancing asset lifetimes. A yieldco's value comes from dividend value, new asset purchases, reinvestment, operational efficiencies, and cost reductions shared with developers. Better financial modeling of these factors can provide a more compelling value proposition for yieldcos.
A spreadsheet error in a 2010 research paper by Carmen Reinhart and Kenneth Rogoff undermined their conclusion that high debt-to-GDP ratios correlate with lower economic growth. Specifically, the paper incorrectly excluded several countries with debt over 90% GDP from its analysis, weakening the claimed relationship between high debt and slow growth that was influential in policymaking. The error was revealed in 2013 through independent research, demonstrating how easily mistakes can propagate in spreadsheets and the importance of transparent data and methodology.
DevOps allows us to continuously deliver customer value in a sustainable way with improved lead time, resilience, and quality. It becomes part of the organisation’s DNA only when the practises are grown organically with appropriate management support.
In this presentation, May Ping Xu covers what DevOps means for the enterprise, a systematic approach to adopt DevOps for enterprise, how to use DevOps to simplify your organisation’s operations, and tips on how to build your team with the right skills for DevOps.
This document provides an overview of Terex Corporation and its business segments. It discusses how Terex is positioned for long-term trends in global construction and energy demand. It also notes that while the current economic environment presents near-term challenges, Terex has leading market positions and is taking actions to manage through the downturn such as reducing production and costs. Key long-term drivers for Terex's business are expected to be growth in developing markets and infrastructure and energy projects.
This document provides an overview of Terex Corporation and its business segments. It discusses how Terex is a diversified equipment company with balanced business and geographic segments. It notes that while the near-term outlook is challenging due to the economic slowdown, Terex is well-positioned for long-term infrastructure and energy trends. The summary outlines responses Terex is taking to address the current market conditions, such as production reductions and focus on operational improvements.
ari-
sin
sin
(et.
rge
leir
)nal
)ffi-
jing
om.
ter-
this
and
lhat
eto
)ay-
the
isa
and
cHAPTER 1 current Multinational challenges andthe Global Economy
U.S. Dollar-Denominated lnterest Rates
1-Month Maturities
U.S. Prime Rate 6 00%
Certificate of Deposit Rate 0 400%
LIBOR 0.260%
London lnterbank Offer Rate
London interbank rates apply to the buying
and'selling of eurodollar deposits between
banks in the international markets.
Notes:
Average rates for MaY 201 1.
U.S. Federal Funds target rale = o O"/"4 25"/"
Eurodollar DePosit
Offer Rate
I
) Eurodollar SPread
)
Eurodollar DePosll
Bid Bate
0.275%
o.255%rii*:.
ig'
t,
*
d!
iri
l:n
e
::
.
;l:
Eurodollar deposits are dollar-denominated
accounts in financial institutions oulside of
the united states.
rter-
dely
)riv-
For
)S AS
the
ein
:stic
Iese
sred
)ank
Ioan
/een
rket
isa
90n
that
ze is
rnks
Deposit rates are higher in the eulocurrency malkets than in most
domesti:c currency
markets because the finicial institutions offering eurocurrency activities are not subject
to
murry of the regulations and reserve requiremen-ts imposed on traditional
domestic banks
and banking activities. with these costs removed, raies are subject to mole competitive
pressures, d*eposit rates are higher, and loan rates are lower. A second majol area of
cost
avoided in the eurocurrency niarkets is the payment of deposit insurance
fees (such as the
Federal Deposit lnsurance" Corporation, FDIb, and assessments paid on deposits
in the
United States). Exhibit 1.3 illustrates how eurodollar deposit and loan rates'
including dollar
LIBOR and LIBID rates, compare with traditionai domestic interest rates'
The Theory of Comparative Aclvantage
The theory of comparative advantage provides a basis for explaining and
justifying interna-
tional trade in a model world assumed to enjoy free trade, perfect competition'
no uncer-
tainty, costless information, and no gou"rn*".ri interference' The theory's origins
lie in the
work of Adam Smith, anJ particutarly with his seminal book TheWealth
of Nations published
in 1776-Smith sought io explain why the division of labor in productive activities' and
subse-
quently international trade of those goods, increased the quality of life
for all citizens' Smith
based his work on ihe concept ol abiolute advantage,wheie every country
should specialize
in the production of that good it was uniquely suited for' More would be
produced for less'
10 PAfil" 1 Global Financial Environment
Thus. by each country specializing in products for which it possessed absolute ad,vantage,
countries could produce more in total and exchange products-trade-for goods that were
cheaper in price than those produced at home.
David Ricardo, in his work On the Principles of Politicat Econonzy anrl Taxotion pub-
lished in 18i7, sought to take the basic ideas set down by Adam Smith a ferv iogical steps
further. Ricardo noted that even if a country possessed absolu ...
This document discusses 10 reasons why innovation is like surfing. It notes that disruptive forces happen where the "waves are forming" like in Silicon Valley. To harness innovation, one needs to be engaged in these innovation hubs. While watching surfers makes innovation look easy, trying it oneself reveals it is not. Factors like timing, positioning and guts are required. The document advocates getting experience in smaller waves before taking on larger disruptions. It also notes innovation is not without risks but the rewards can be huge for those who are willing to take those risks.
This document contains notes and slides from a lecture on various topics related to business modeling, disruptive technologies, and simulations. Some key points include:
1. A simulation assessed the top skills needed for model building as knowledge of the business, data, and critical thinking, while statistical knowledge and tool knowledge ranked lower.
2. Notes discuss Uber's regulatory challenges as a disruptive technology and how incumbent taxi operators responded. The document also contains slides on simulations assessing battery technology investments.
3. The slides show examples of R&D investment strategies over time for nickel metal hydride and ultracapacitor battery technologies, as well as the profit contributions of each.
4. Disruptive innovation frameworks are discussed
The document summarizes an interview discussing ways to improve the yieldco model of financing renewable energy projects. It finds that yieldcos should focus on improving operating cost structure, driving down development and construction costs through synergies with developers, and enhancing asset lifetimes. A yieldco's value comes from dividend value, new asset purchases, reinvestment, operational efficiencies, and cost reductions shared with developers. Better financial modeling of these factors can provide a more compelling value proposition for yieldcos.
A spreadsheet error in a 2010 research paper by Carmen Reinhart and Kenneth Rogoff undermined their conclusion that high debt-to-GDP ratios correlate with lower economic growth. Specifically, the paper incorrectly excluded several countries with debt over 90% GDP from its analysis, weakening the claimed relationship between high debt and slow growth that was influential in policymaking. The error was revealed in 2013 through independent research, demonstrating how easily mistakes can propagate in spreadsheets and the importance of transparent data and methodology.
DevOps allows us to continuously deliver customer value in a sustainable way with improved lead time, resilience, and quality. It becomes part of the organisation’s DNA only when the practises are grown organically with appropriate management support.
In this presentation, May Ping Xu covers what DevOps means for the enterprise, a systematic approach to adopt DevOps for enterprise, how to use DevOps to simplify your organisation’s operations, and tips on how to build your team with the right skills for DevOps.
This document provides an overview of Terex Corporation and its business segments. It discusses how Terex is positioned for long-term trends in global construction and energy demand. It also notes that while the current economic environment presents near-term challenges, Terex has leading market positions and is taking actions to manage through the downturn such as reducing production and costs. Key long-term drivers for Terex's business are expected to be growth in developing markets and infrastructure and energy projects.
This document provides an overview of Terex Corporation and its business segments. It discusses how Terex is a diversified equipment company with balanced business and geographic segments. It notes that while the near-term outlook is challenging due to the economic slowdown, Terex is well-positioned for long-term infrastructure and energy trends. The summary outlines responses Terex is taking to address the current market conditions, such as production reductions and focus on operational improvements.
ari-
sin
sin
(et.
rge
leir
)nal
)ffi-
jing
om.
ter-
this
and
lhat
eto
)ay-
the
isa
and
cHAPTER 1 current Multinational challenges andthe Global Economy
U.S. Dollar-Denominated lnterest Rates
1-Month Maturities
U.S. Prime Rate 6 00%
Certificate of Deposit Rate 0 400%
LIBOR 0.260%
London lnterbank Offer Rate
London interbank rates apply to the buying
and'selling of eurodollar deposits between
banks in the international markets.
Notes:
Average rates for MaY 201 1.
U.S. Federal Funds target rale = o O"/"4 25"/"
Eurodollar DePosit
Offer Rate
I
) Eurodollar SPread
)
Eurodollar DePosll
Bid Bate
0.275%
o.255%rii*:.
ig'
t,
*
d!
iri
l:n
e
::
.
;l:
Eurodollar deposits are dollar-denominated
accounts in financial institutions oulside of
the united states.
rter-
dely
)riv-
For
)S AS
the
ein
:stic
Iese
sred
)ank
Ioan
/een
rket
isa
90n
that
ze is
rnks
Deposit rates are higher in the eulocurrency malkets than in most
domesti:c currency
markets because the finicial institutions offering eurocurrency activities are not subject
to
murry of the regulations and reserve requiremen-ts imposed on traditional
domestic banks
and banking activities. with these costs removed, raies are subject to mole competitive
pressures, d*eposit rates are higher, and loan rates are lower. A second majol area of
cost
avoided in the eurocurrency niarkets is the payment of deposit insurance
fees (such as the
Federal Deposit lnsurance" Corporation, FDIb, and assessments paid on deposits
in the
United States). Exhibit 1.3 illustrates how eurodollar deposit and loan rates'
including dollar
LIBOR and LIBID rates, compare with traditionai domestic interest rates'
The Theory of Comparative Aclvantage
The theory of comparative advantage provides a basis for explaining and
justifying interna-
tional trade in a model world assumed to enjoy free trade, perfect competition'
no uncer-
tainty, costless information, and no gou"rn*".ri interference' The theory's origins
lie in the
work of Adam Smith, anJ particutarly with his seminal book TheWealth
of Nations published
in 1776-Smith sought io explain why the division of labor in productive activities' and
subse-
quently international trade of those goods, increased the quality of life
for all citizens' Smith
based his work on ihe concept ol abiolute advantage,wheie every country
should specialize
in the production of that good it was uniquely suited for' More would be
produced for less'
10 PAfil" 1 Global Financial Environment
Thus. by each country specializing in products for which it possessed absolute ad,vantage,
countries could produce more in total and exchange products-trade-for goods that were
cheaper in price than those produced at home.
David Ricardo, in his work On the Principles of Politicat Econonzy anrl Taxotion pub-
lished in 18i7, sought to take the basic ideas set down by Adam Smith a ferv iogical steps
further. Ricardo noted that even if a country possessed absolu ...
Global IP Market Quick Update on the Secondary Market for PatentsErik Oliver
STATE OF AFFAIRS: THE GLOBAL IP MARKET
- 2019 Annual IP Market Data Preview
- Who’s Buying? Who’s Selling? And at What Price?
- Key Factors Impacting the Market
- Outlook for 2020 & Beyond: Still Cautiously Optimistic?
DealMarket DIGEST Issue 146 // 20 June 2014CAR FOR YOU
This document summarizes recent private equity deals and trends from around the world:
- TPG is leading a consortium including PAG Asia Capital and Ontario Teachers' Pension Plan in a $1.15 billion buyout of a property unit from Australian engineering firm UGL.
- European buyout deals are at their lowest level since 2009, though bolt-on acquisitions that help companies expand are increasing.
- India and Singapore are home to the largest proportion of Asia-Pacific based family offices that invest in private equity funds.
- China is seeing record-high buyout volumes in 2014, with $6.8 billion year-to-date across 30 deals, driven by real estate
DealMarket Digest Issue 146 - 20 June 2014Urs Haeusler
This document summarizes recent private equity deals and trends from around the world:
- TPG is leading a consortium including PAG Asia Capital and Ontario Teachers' Pension Plan in a $1.15 billion buyout of a property unit from Australian engineering firm UGL.
- European buyout deals are at their lowest level since 2009, though bolt-on acquisitions that help companies expand are increasing.
- India and Singapore are home to the largest proportion of Asia-Pacific based family offices that invest in private equity funds.
- China is seeing record-high buyout volumes in 2014, with $6.8 billion year-to-date across 30 deals, driven by real estate
DealMarket Digest Issue 131 - 7 March 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 131 - March 7th, 2014:
- How New European Rules Affect Private Equity Teams
- PE outlook for Europe
- EY’s Top 10 VC Dealmakers Worldwide
- Global Telecom M&A Hits 13 Year High
- PE Drives Robust Returns for Ontario Pension Fund
- Quote of the Week: Venture Capital? Make Way for Geek Guilds
Keynote intelligence, innovation & best practiceVincent Kwon
1. The document discusses how organizations can drive growth and profitability through intelligence, innovation, and best practices. It provides examples of world-leading organizations that achieve high returns on shareholder funds and above-average growth through intellectual property, unique culture, and following best practices.
2. It argues that in today's business environment, organizations must plan from an "outside-in" perspective by understanding influential external factors like the world, national, economic, and industry environments. The intelligent organization also sources over a third of its business information externally to support this outside-in planning approach.
3. Innovation and productivity are imperative for success. It shows countries with the highest standards of living invest heavily in research and development and
The document provides a summary of news and events from the private equity industry in its weekly digest issue 87. It covers the following topics in 3 sentences or less:
1) The need for data standardization between GPs and LPs to improve information sharing.
2) Rumors that Life Technologies has attracted interest from a buyout group for a $10 billion deal.
3) Positive outlook for continued growth in clean energy sectors like solar, wind, and biofuels based on a report from Clean Edge.
iRobot designs and builds consumer, government, and industrial robots. It offers floor vacuuming robots, floor washing robots, pool cleaning robots, and other consumer products. It also provides small unmanned ground robots and underwater vehicles to government and industrial customers. The document discusses iRobot's business model, growth strategies, innovative products, intellectual property, target audiences, addressable markets, management team, and financial performance. An acquisition project for iRobot is being proposed, and the document analyzes iRobot as a potential acquisition target based on its financials, growth opportunities, and valuation using the APV and comparable company methods.
The document discusses key findings from a survey of 500 global commercial real estate investors on their investment outlook and preferences:
1. 97% of respondents plan to increase their capital commitment to commercial real estate in the next 18 months, with the largest increases expected in the US, Germany, and Canada.
2. Investors plan to diversify their portfolios by increasing investments in mixed-use properties and nontraditional assets like data centers and healthcare facilities.
3. Over half of investors aim to invest or increase investments in properties with flexible leases and flexible workspaces to align with changing tenant preferences.
This document analyzes the residential development business in China using Michael Porter's Five Forces model. It examines the intensity of industry rivalry (neutral to favorable), threat of new entrants (neutral to unfavorable), threat of substitutes (favorable for end use, neutral for investment), bargaining power of suppliers (favorable), and bargaining power of buyers (neutral). Key factors discussed include barriers to entry, differentiation of developers' products, availability of substitutes, developers' relationships with suppliers and power in negotiations, and how buyers' power fluctuates depending on the property cycle stage.
The Performance of Pension Funds Investments in Real Estatenilskok
Real estate is the most significant alternative asset class for pension funds, representing more than five percent of total holdings, on average. This presentation employs a previously unexplored database to examine the investments of some 880 pension funds in direct real estate and real estate investment trusts (REITs) over the 1990-2009 period. Regarding allocation choice, we document that larger pension funds are more likely to invest in real estate internally, have lower costs, and higher net returns. Smaller funds are more likely to invest in direct real estate through external managers and fund-of-funds, but largely ignore REITs. The additional investment layers significantly increase their costs and disproportionally reduce returns. Moreover, U.S. pension funds’ investment costs are twice as high as those of their foreign peers, and both gross and net performance are lower. The underperformance of U.S. pension funds in real estate investments is most striking in the last two years of the sample period, which may be due to opportunistic investment behavior pre-crisis.
The mutual fund industry saw a decrease in assets for April 2012, with starting assets of $669.2 billion, net sales of $2.3 billion, and a market effect of -$5.9 billion, resulting in ending assets of $665.6 billion. The top performing fund categories were Canadian fixed income balanced, global fixed income balanced, and Canadian dividend & income equity funds, while the worst performing were global equity, Canadian focused equity, and U.S. equity funds. Product developments in April included new fund launches focused on emerging markets, managed futures, and Canadian and global equities.
The document discusses fundamentals of real estate as an asset class including different types of real estate properties, returns characteristics, and recovery time frames. It notes that real estate returns can be conservative, moderate, or aggressive depending on capital gains. The document also provides tips for individuals looking to invest in real estate such as using the approach of a homeowner, relying on localized research, and always measuring total returns. Additionally, it discusses the Dubai real estate market and includes references on the impact of the financial crisis on real estate.
Harris & Harris Group invests in transformative companies developing disruptive science and technology. It has a portfolio of 26 companies across various sectors including life sciences, electronics, and energy. Recent liquidity events from companies like Xradia that was acquired by Carl Zeiss have generated gains. The company aims to continue realizing value from its portfolio through partnerships and exits over the next few years to drive further growth.
This document provides a summary of a report on global equities. It discusses several topics:
- Rising global temperatures and China's efforts to become more environmentally friendly through its "Beautiful China" initiative.
- China's increasing innovation and investments in renewable energy and infrastructure through its Belt and Road initiative.
- The impact of trade wars on corporate profits and global trade flows.
- Technological disruption across multiple industries and the growing importance of large technology companies.
- Shifting consumer behaviors among millennials and the rise of esports as an alternative to traditional televised sports.
- The portfolio manager's quality growth investment philosophy and the fund's strong risk-adjusted returns.
This document discusses common investment challenges such as randomness of returns, picking winning stocks, timing the market, picking active managers, and the costs of indexing. It then outlines an investment approach focused on strategic partnerships with institutional managers, academically sound portfolio construction, keeping costs low, and HonorVise portfolios. Key points include reviewing evidence that stock returns are random, individual stock picking is difficult, market timing rarely works, and costs are lower with index funds. The approach focuses on dimensions of expected returns including size, value, and market factors.
NorthStar Realty Finance is a commercial real estate finance company with $6.8 billion of assets under management across three business lines: commercial real estate lending, real estate securities investment/management, and net leased corporate/healthcare properties. The company has a seasoned management team with extensive experience and a focus on credit risk management. Key highlights include a strong liquidity position, minimal near-term debt maturities, and consistent dividend payments since going public. NorthStar's priorities are liquidity/capital retention, intensive credit monitoring, capital raising through alternative sources, and opportunistic investments.
NorthStar Realty Finance is a commercial real estate finance company with three primary business lines: commercial real estate lending, real estate securities investment and management, and net leased corporate and healthcare properties. It has $6.8 billion of commercial real estate loans, securities, and properties under management. NorthStar focuses on senior loans, direct origination, and long-term capital raising. It has a seasoned management team with extensive experience and a strong credit track record through economic cycles. NorthStar prioritizes liquidity management, capital retention, and intensive credit risk management during the difficult market environment.
Building and Sustaining Your Competitive Advantage by Handry SatriagoAkademi Berbagi
This document summarizes a presentation given by Dr. Handry Satriago on building and sustaining competitive advantage. The presentation discusses how the world is becoming increasingly globalized and flat, with interconnected supply chains and competition. It emphasizes that competitive advantage is difficult to sustain given globalization, turbulence in the business environment, and demanding customers. The presentation argues that nations and companies must focus on innovation, developing human capital and talent, and differentiating themselves through unique strategies to achieve and maintain competitive advantage in this challenging global context.
Don Tapscott's New Solutions for a Connected Planet - MaRS Global LeadershipMaRS Discovery District
In this new age of networked intelligence, collaborative communities are enhancing and even bypassing crumbling institutions. We are innovating the way our financial institutions and governments operate; how we educate our children; how the healthcare, newspaper, and energy industries serve their customers; how we care for our neighbourhoods; and even how we solve global problems.
From his latest book, (co-author Anthony D. Williams) Macrowikinomics: New Solutions for a Connected Planet, Don Tapscott presents groundbreaking innovations from every corner of the globe: how businesses, organizations and individuals alike are using mass collaboration to revolutionize not only the way we work, but how we live, learn, create and care for each other.
The document discusses cleantech investments and carbon dioxide levels in the atmosphere. It notes that while cleantech investments have generated bullish returns, carbon dioxide levels in the atmosphere have risen significantly to 396 parts per million, higher than the pre-industrial level of 280 parts per million. Although the cleantech sector is seeing investment success, carbon emissions continue to rise globally indicating that efforts to reduce fossil fuel usage still have a long way to go.
More Related Content
Similar to Knight Capital - Burges - Financing Renewables
Global IP Market Quick Update on the Secondary Market for PatentsErik Oliver
STATE OF AFFAIRS: THE GLOBAL IP MARKET
- 2019 Annual IP Market Data Preview
- Who’s Buying? Who’s Selling? And at What Price?
- Key Factors Impacting the Market
- Outlook for 2020 & Beyond: Still Cautiously Optimistic?
DealMarket DIGEST Issue 146 // 20 June 2014CAR FOR YOU
This document summarizes recent private equity deals and trends from around the world:
- TPG is leading a consortium including PAG Asia Capital and Ontario Teachers' Pension Plan in a $1.15 billion buyout of a property unit from Australian engineering firm UGL.
- European buyout deals are at their lowest level since 2009, though bolt-on acquisitions that help companies expand are increasing.
- India and Singapore are home to the largest proportion of Asia-Pacific based family offices that invest in private equity funds.
- China is seeing record-high buyout volumes in 2014, with $6.8 billion year-to-date across 30 deals, driven by real estate
DealMarket Digest Issue 146 - 20 June 2014Urs Haeusler
This document summarizes recent private equity deals and trends from around the world:
- TPG is leading a consortium including PAG Asia Capital and Ontario Teachers' Pension Plan in a $1.15 billion buyout of a property unit from Australian engineering firm UGL.
- European buyout deals are at their lowest level since 2009, though bolt-on acquisitions that help companies expand are increasing.
- India and Singapore are home to the largest proportion of Asia-Pacific based family offices that invest in private equity funds.
- China is seeing record-high buyout volumes in 2014, with $6.8 billion year-to-date across 30 deals, driven by real estate
DealMarket Digest Issue 131 - 7 March 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 131 - March 7th, 2014:
- How New European Rules Affect Private Equity Teams
- PE outlook for Europe
- EY’s Top 10 VC Dealmakers Worldwide
- Global Telecom M&A Hits 13 Year High
- PE Drives Robust Returns for Ontario Pension Fund
- Quote of the Week: Venture Capital? Make Way for Geek Guilds
Keynote intelligence, innovation & best practiceVincent Kwon
1. The document discusses how organizations can drive growth and profitability through intelligence, innovation, and best practices. It provides examples of world-leading organizations that achieve high returns on shareholder funds and above-average growth through intellectual property, unique culture, and following best practices.
2. It argues that in today's business environment, organizations must plan from an "outside-in" perspective by understanding influential external factors like the world, national, economic, and industry environments. The intelligent organization also sources over a third of its business information externally to support this outside-in planning approach.
3. Innovation and productivity are imperative for success. It shows countries with the highest standards of living invest heavily in research and development and
The document provides a summary of news and events from the private equity industry in its weekly digest issue 87. It covers the following topics in 3 sentences or less:
1) The need for data standardization between GPs and LPs to improve information sharing.
2) Rumors that Life Technologies has attracted interest from a buyout group for a $10 billion deal.
3) Positive outlook for continued growth in clean energy sectors like solar, wind, and biofuels based on a report from Clean Edge.
iRobot designs and builds consumer, government, and industrial robots. It offers floor vacuuming robots, floor washing robots, pool cleaning robots, and other consumer products. It also provides small unmanned ground robots and underwater vehicles to government and industrial customers. The document discusses iRobot's business model, growth strategies, innovative products, intellectual property, target audiences, addressable markets, management team, and financial performance. An acquisition project for iRobot is being proposed, and the document analyzes iRobot as a potential acquisition target based on its financials, growth opportunities, and valuation using the APV and comparable company methods.
The document discusses key findings from a survey of 500 global commercial real estate investors on their investment outlook and preferences:
1. 97% of respondents plan to increase their capital commitment to commercial real estate in the next 18 months, with the largest increases expected in the US, Germany, and Canada.
2. Investors plan to diversify their portfolios by increasing investments in mixed-use properties and nontraditional assets like data centers and healthcare facilities.
3. Over half of investors aim to invest or increase investments in properties with flexible leases and flexible workspaces to align with changing tenant preferences.
This document analyzes the residential development business in China using Michael Porter's Five Forces model. It examines the intensity of industry rivalry (neutral to favorable), threat of new entrants (neutral to unfavorable), threat of substitutes (favorable for end use, neutral for investment), bargaining power of suppliers (favorable), and bargaining power of buyers (neutral). Key factors discussed include barriers to entry, differentiation of developers' products, availability of substitutes, developers' relationships with suppliers and power in negotiations, and how buyers' power fluctuates depending on the property cycle stage.
The Performance of Pension Funds Investments in Real Estatenilskok
Real estate is the most significant alternative asset class for pension funds, representing more than five percent of total holdings, on average. This presentation employs a previously unexplored database to examine the investments of some 880 pension funds in direct real estate and real estate investment trusts (REITs) over the 1990-2009 period. Regarding allocation choice, we document that larger pension funds are more likely to invest in real estate internally, have lower costs, and higher net returns. Smaller funds are more likely to invest in direct real estate through external managers and fund-of-funds, but largely ignore REITs. The additional investment layers significantly increase their costs and disproportionally reduce returns. Moreover, U.S. pension funds’ investment costs are twice as high as those of their foreign peers, and both gross and net performance are lower. The underperformance of U.S. pension funds in real estate investments is most striking in the last two years of the sample period, which may be due to opportunistic investment behavior pre-crisis.
The mutual fund industry saw a decrease in assets for April 2012, with starting assets of $669.2 billion, net sales of $2.3 billion, and a market effect of -$5.9 billion, resulting in ending assets of $665.6 billion. The top performing fund categories were Canadian fixed income balanced, global fixed income balanced, and Canadian dividend & income equity funds, while the worst performing were global equity, Canadian focused equity, and U.S. equity funds. Product developments in April included new fund launches focused on emerging markets, managed futures, and Canadian and global equities.
The document discusses fundamentals of real estate as an asset class including different types of real estate properties, returns characteristics, and recovery time frames. It notes that real estate returns can be conservative, moderate, or aggressive depending on capital gains. The document also provides tips for individuals looking to invest in real estate such as using the approach of a homeowner, relying on localized research, and always measuring total returns. Additionally, it discusses the Dubai real estate market and includes references on the impact of the financial crisis on real estate.
Harris & Harris Group invests in transformative companies developing disruptive science and technology. It has a portfolio of 26 companies across various sectors including life sciences, electronics, and energy. Recent liquidity events from companies like Xradia that was acquired by Carl Zeiss have generated gains. The company aims to continue realizing value from its portfolio through partnerships and exits over the next few years to drive further growth.
This document provides a summary of a report on global equities. It discusses several topics:
- Rising global temperatures and China's efforts to become more environmentally friendly through its "Beautiful China" initiative.
- China's increasing innovation and investments in renewable energy and infrastructure through its Belt and Road initiative.
- The impact of trade wars on corporate profits and global trade flows.
- Technological disruption across multiple industries and the growing importance of large technology companies.
- Shifting consumer behaviors among millennials and the rise of esports as an alternative to traditional televised sports.
- The portfolio manager's quality growth investment philosophy and the fund's strong risk-adjusted returns.
This document discusses common investment challenges such as randomness of returns, picking winning stocks, timing the market, picking active managers, and the costs of indexing. It then outlines an investment approach focused on strategic partnerships with institutional managers, academically sound portfolio construction, keeping costs low, and HonorVise portfolios. Key points include reviewing evidence that stock returns are random, individual stock picking is difficult, market timing rarely works, and costs are lower with index funds. The approach focuses on dimensions of expected returns including size, value, and market factors.
NorthStar Realty Finance is a commercial real estate finance company with $6.8 billion of assets under management across three business lines: commercial real estate lending, real estate securities investment/management, and net leased corporate/healthcare properties. The company has a seasoned management team with extensive experience and a focus on credit risk management. Key highlights include a strong liquidity position, minimal near-term debt maturities, and consistent dividend payments since going public. NorthStar's priorities are liquidity/capital retention, intensive credit monitoring, capital raising through alternative sources, and opportunistic investments.
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Knight Capital - Burges - Financing Renewables
1. Knight Capital Group
!! Knight (NASDAQ: NITE) is one of the world’s leading financial services firms and has emerged as
a prominent part of the new Wall Street
!! Knight’s most important resource is our people; we employ over 1,000 professionals at 24
locations in the United States, Europe and Asia
!! Our business model integrates our resources enabling our investor and issuer clients direct
access and robust execution across all asset classes and in all of our capital markets activities
!! We offer high-quality trade executions through natural liquidity, capital facilitation when
necessary, and trading technology
!! Knight’s Capital Markets Group provides investment banking services and access to our many
resources for our corporate clients
Origination Sales & Trading Research
!! Originate, structure and market a range of !! Knight has one of the largest and most !! Equity Market Strategic Research offers
equity and fixed-income securities experienced institutional sales trading and perspective on global markets and strategic
including high-yield, high-grade and block trading teams in the world insight
convertible; provide related capital
!! Knight is the #1 market marker in NYSE, !! Fixed Income Research takes a analytical,
structure advisory services
NASDAQ CM, NASDAQ GM AND NASDAQ GSM fundamental “bottoms-up” approach to
!! Core competencies include capital markets, securities issuer’s entire capital structure
structuring, analytical support, new
!! Knight knows thousands of domestic and !! Senior analysts have an average of over 17
product development, and rating agency
international institutional investors years of experience in the industry
analysis
!! The team covers 80% of high yield and
distressed universe
1
2. Knight’s Sales & Trading Capabilities
!! Knight is the #1 market maker in NYSE securities, with 17.25% total volume YTD
!! Knight is the #1 market maker in NASDAQ CM securities, with 47.71% total volume YTD
!! Knight is the #1 market maker in NASDAQ GM securities, with 42.16% total volume YTD
!! Knight is the #1 market maker in NASDAQ GSM securities, with 18.06% total volume YTD
Source: AutEx/BlockData FY2009
Global Sales Office Locations
2
3. Knight is the Market Leader in Cleantech Equity Trading
#1 in Volume
Share volume in (1/1/2009 – 12/31/2009)
Source: AutEx Blockdata advertised US trade volume
3
4. What Does Our Trading Share Mean to Capital Markets?
We track institutional buy and sell activity and generate
real time insight for our capital markets team
The best intelligence on the “new” Wall Street
Capital market targeting and placement is
significantly more efficient and cost effective
4
10. Solar Markets: Germany vs. California
Cumulative MWs
Sources: CPUC, CEC, SEIA and
German equivalents.
Germany added 10 times more solar than California last year even
though California’s solar resource is about 70% better
10
11. The Holy Grail for attracting Capital
!! Regulatory stability
!! Avoid stop/start; no cap
!! Simplicity
!! Federal vs. State vs. IOU vs. Muni
!! Numerous variations
!! Barriers to entry – for capital and business
!! Predictable cashflows from selling power
!! Guaranteed transmission access
!! Must take contracts
!! Long term contracts to match long term assets
!! Reasonable Returns across different projects
!! Technology, size
!! Expedited Permitting
…the US share of worldwide solar shrunk to 5%
11
12. Parasitic Transaction Costs & Parasitic Transaction Time are Near-Zero
Typical California paperwork for one project Typical Germany paperwork for one project
Could be a 1kW-sized project, but maximum Could be a 1kW or 20MW-sized project, or bigger.
1MW (via CSI program). Even more paperwork
for California projects larger than 1MW (via RPS
program).
Frictional Costs add 10% on the ratepayer for California projects vs. German ones
Source: Gary Gerber, President of CalSEIA and Sun Light & Power, Jun09
12
13. Global Financial Meltdown
!! Exacerbated winners from losers
!! Less tax capacity & capital available by institutional investors
!! Federal tax credits were becoming “worthless”
!! Equity supply dries up; returns increase
!! Fewer renewable energy projects
!! ~3,000 MW less wind farms installed in US in ’09 vs. ’08
!! Loss of 38,000 “green collar” jobs
Warren Buffet: “When the tide goes out you can see who has been
swimming naked”
13
14. Shortfall in Tax Equity
Source – GE Energy Financial Services
14
15. NREL Research Findings
!! Countries with FITs:
!! Have highest RE deployment
!! Have highest job creation; highest economist
benefits tied to industry, manufacturing &
services
!! Have counter-intuitively delivered lower-cost RE
generation than countries employing
“competitive” policies like the RPS & RO in the UK
15
16. FITS vs. Alternative Policies
Wind power deployment in the EU:
Source: EUROSTAT, 2008; NREL, 2008
16
17. NREL Findings - RE Policy & Cost
FITs
RPS +
RECs
* Electricity price + Tradable Green Certificate (i.e. REC)
Source: BMU 2008; ISI, 2008; Fouquet, D. et al., 2008
17
18. NREL - FITS vs. RPS on Cost
" NREL Research finding that FITs
offer better value for money
Source: OPTRES, 2007; NREL 2009
18
19. How Does Ontario’s RE Policy Compare?
Ontario has the best RE policies in the Western Hemisphere
19
20. Investment Return for ON FIT
Implied Debt Costs
!! Investment appetite has returned – HY index has improved from 20% to ~ 8-9%; bank appetite remains restrained
!! The FIT must take obligation from OPA (100% owned by the Province of Ontario) provides a stable source of cash
flows for FIT projects and makes them financeable
!! Province of Ontario’s (Corp rating: Aa1/AA-) bonds are trading at 4.2%; similar regulated US utilities trade
within 100bps risk premium Treasuries
!! FPL Group’s (Corp rating: A2/A) bonds are trading at 4.9%; US IPP’s long term bonds are trading between 8%
to 9%
!! Project Finance debt spreads for RE projects 300-350bps for all in costs 6.5-7%; cost of debt not the issue
Yield to worst for Electric Utilities Yield to worst for Independent Power Producers
FPL: 4.9%
MIR: 9.1%
ONT: 4.2% NRG: 8.4%
RRI: 8.2%
Source: Bloomberg, Knight as of 01/25/10 Source: Bloomberg, Knight as of 01/25/10
Notes: ONT: Province of Ontario, FPL: FPL Group Notes: MIR: Mirant Corp, NRG: NRG Energy, RRI: Reliant Energy
20
22. Attractive Post Tax Levered Equity IRR Returns
Solar Ground Mounted
(Installed $4.20-5.60)
Wind Onshore
(Installed $2.50-3.20)
Scotia Capital Research
22
23. Conclusion
!! Investment is fungible – it will flow to the best risk weighted returns
!!Without debt financing RE isn’t scalable
!! High IRRs are healthy but based on European experience show flexibility
!! Get organized to protect FITs; articulate benefits
Investors will pay a premium for liquidity – Knight is the leading
provider of equity liquidity
23
24. Contact Information
Capital Markets Contact Information
Please contact John Burges for Clean Tech and Energy inquiries:
jburges@knight.com
212-479-7498
Capital Markets Office Locations
Greenwich, CT – DCM
Corporate Headquarters New York City – ECM Headquarters
Headquarters
545 Washington Blvd 405 Lexington Ave, 46th Fl
1 Greenwich Office Park South
Jersey City, NJ 07310 New York, NY 10017
2nd Floor
Greenwich, CT 06831
24