Company Philosophy
Starwood Energy actively pursues attractive, risk-adjusted returns from both opportunistic acquisitions and from development-stage funding of energy infrastructure assets.
Starwood Energy targets investments in hard assets with strong, contracted cash flows that offer superior equity returns upon exit. Starwood Energy believes that this approach reduces downside potential, provides financial flexibility, and broadens exit alternatives. Starwood Energy also targets both greenfield and brownfield development opportunities where it can add value through its development expertise.
Starwood Energy seeks to enhance value by pursuing negotiated transactions when possible. To identify such opportunities, Starwood Energy executives leverage long-standing relationships with owners of energy assets and their advisors. Starwood Energy believes that its executives have a demonstrated history of successfully originating transactions through proprietary channels rather than through agent-led auctions. For example, of the seven transactions that Starwood Energy has committed to, all but one were negotiated transactions.
Starwood Energy believes that a clear understanding of regional power markets is key to its investment strategy. By understanding the sources of demand for energy and capacity, the unique aspects of State and Federal regulation, and the regional opportunities to address demand, Starwood Energy distinguishes itself from traditional power generation-only investors. Starwood Energy executives have been involved with five of the eight completed independent transmission transactions and remain actively involved in pursuing similar investment opportunities. Similarly, Starwood Energy is actively pursuing Solar generation projects in response to the rapidly rising need for green power in the U.S.
The size of the Fund’s equity investments typically ranges from $10 million to $100 million, or more, the ‘middle market’ that Starwood Energy believes affords more diverse opportunities, negotiated transactions and attractive values.