Senergy Alternative Energy and Par Equity LLP Announce New Investment Partnership
09 March 2009
Emerging player in the venture capital market, Par Equity LLP, has teamed up with Senergy Alternative Energy Ltd to identify and pursue investment opportunities in companies operating in the alternative energy and clean technology sectors.
Together they will examine the potential for investment in asset developments and growth companies, with an initial focus on offshore and onshore wind; coal bed methane and coal mine methane; power management; and geothermal energy. The team will also look at investing in enabling and support technologies.
This partnership brings together the industry knowledge, expertise and global network of Senergy, an established energy services business, with the investment and advisory capabilities of Par Equity.
The two organisations aim to make investments of around £500,000 in as many as half a dozen companies in the next 12 months.
The new venture will allow Senergy to grow its alternative energy business, exploiting its resources in this area and accessing its strong asset development background, whilst Par Equity will broaden the range of investment opportunities it considers, applying its model of investing intellectual and financial capital.
The funding for deals will initially come from the Par Syndicate, which was created as an angel investment arm of Par Equity. At some future date a more formal fund structure may be put in place. Depending on early progress made with identifying investment opportunities, a target fund size of £100 million could be considered. In the meantime, the Par Syndicate has secured partner status with the Scottish Co-investment Fund, which will enable them to leverage additional public money to support Scottish companies with high-growth potential.
Commenting on the announcement Nial McCollam, managing director of Senergy Alternative Energy, said: “This is an exciting opportunity to capitalise on the investment opportunities to which we often have favourable access. With our technical and commercial know-how working alongside Par's investment capability, we can support alternative energy companies and project developers in achieving their objectives of creating value, fast-tracking technology and ultimately securing sustainable energy solutions worldwide.”
Paul Munn, managing partner of Par Equity, said: “We welcome this opportunity to work with a leading player in the rapidly evolving alternative energy space. This partnership is consistent with the Par Equity model of adding value to our investments by having expertise which can be deployed within investee companies to accelerate and increase the ultimate value created. We are already evaluating a number of opportunities and look forward to completing our first joint transaction in due course.”
Senergy stepped up its presence in alternative energy with the creation of group company – Senergy Alternative Energy and then the acquisition of Econnect in the second half of 2008. The diversified energy services business now provides the renewable market the same “life of asset” service it delivers in oil and gas.
Its turnover has increased to £70 million through rapid organic growth and strategic acquisitions. Future plans include the development of the company in the alternative energy sector and in other locations around the world.