Our Investment Strategy
Raj Sharma Holdings investment strategy is highly differentiated from that of other developers and funds. Our team has the skills, experience and track record to enter and add value to projects at any stage of the project development lifecycle. In particular, we approach every project with a pre-arranged engineering, procurement, construction and finance (“EPCF”) package agreed with our EPCF Partner.
Raj Sharma Holdings main focus on investments is in Solar PV and Onshore Wind.
We invest in projects using proven and bankable renewable energy technologies.
We have a proven track record within the scope of these technologies.
Raj Sharma Holdings invests in OECD Europe
We seek out countries with attractive renewable & legal frameworks, banking systems and exit liquidity.
We have excellent market access through its in-house origination capabilities, stakeholders and local partners in our Core markets.
Project Entry Point
Raj Sharma Holdings invests as early as possible in the project development lifecycle.
We invest in mature, operational assets, only to the extent these provide for expansion opportunities.
Role of Raj Sharma Holdings
We act as lead developer or co-developer.
Engineering, procurement, construction and finance through our EPCF Partner.
Raj Sharma Holdings seeks majority equity and finance stakes in each project.
Our projects have long term Power Purchase Agreements with state backed or other highly rated counter-parties selling into an established power pool.
Our EPC contracting strategy is a lump sum, turn-key arrangement with fixed price and date certain provisions.
Our projects are funded by non-recourse project finance arranged through our EPCF Partner.
We have a well defined target market based risk adjusted IRRs for each renewable energy project.
Exponential growth in Our Core Markets:
- Current energy shortage across our Core Markets drives a USD 200bn investment need in renewable energy generation by 2020.
- Governments have an urgency to reduce dependency on liquid fluids and have committed to ambitious renewable energy targets.
- Renewables are significantly less expensive than conventional power in most core economies and its competitiveness is improving.
- Governments recognise this, and new legal frameworks have recently been approved, allowing significant projects to materialise in recent years.
Social and economic impact is particularly relevant for our Core Markets. Axepoint Capital’s investments will:
- Have a strong environmental impact – with some of our regions having one of the highest carbon footprints in the world
- Help create energy independence and security of supply, thus having a positive influence on the geopolitical landscape
- Our current pipeline will employ numerous people during the one to two year construction period of our plants.
Early entrant advantages:
- As evidenced in Europe and the US, early entrants in the renewable energy market are able to yield greater returns.
- Governments generally take a more supportive approach to early entrants in order to incentivise further market participation.
Addressing current market needs:
- The renewable energy industry has created a mid-market investment landscape for smaller size projects
- The mid market in these regions have the natural resources and legal framework, but lack project finance, therefore limiting growth. We address these needs where the larger energy companies are not active.