💡 Development platforms are increasingly leveraging equity capital, evolving their strategies to mature their pipelines. This move is particularly noticeable in the renewable energy sector - think solar, wind, and storage projects, along with cutting-edge technologies like green ammonia.
🤝 Key Highlights:
-- Strategic partnerships are forming between these platforms and PE firms, including the venture arms of utilities and oil & gas majors.
-- This synergy enables equity investors to acquire valuable stakes and developers to sidestep costly debt markets for growth funding.
🔄 Meanwhile, leveraged utilities are adopting a unique approach: divesting up to 50% stakes in select business units. This strategy aims to balance the need for ambitious capex deployment and capacity buildout without further debt accumulation.
🌱 Utilities maintain their financial health without compromising on credit ratings, while investors get a slice of EBITDA-positive assets and promising GW-scale pipelines.
📈 What are your thoughts?