Credit Strategy
The depth of our sourcing network, combined with our extensive borrowing experience as one of the sector’s most-active investors, positions us to be an effective credit solutions provider.
Strategy
Our reputation as one of the largest energy infrastructure investors allows us to readily source credit opportunities within our core areas of sector expertise and structure customized loan packages that meet the objectives of the asset owner while adequately protecting our investment.
Our first-hand structuring experience gives us a unique perspective relative to lenders who have never owned assets in the sector and who have never been a borrower.
- Emphasis on capital preservation and downside protection
- Proprietary origination through the ECP platform
- Creative and customized structuring approach
- Cash yield component
- Thoughtful portfolio construction and diversification
Credit Opportunity
Elevated Sector Capital Needs
Growing demand for infrastructure project funding continues as the societal push for decarbonization grows. Capital is being committed to critical infrastructure necessary to support renewable power expansion and ensure grid reliability. State and federal incentives, coupled with increasingly aggressive corporate mandates, are expected to drive continued new project spend and associated demand for credit.
Sector Transformation and Policy Support
Achieving meaningful reductions in carbon emissions will require the electrification of a number of sectors across the economy, driving increased clean energy investments and potentially leading to aggregate electricity consumption growth. The power sector is being disrupted as natural gas and renewables gain market share at the expense of coal and nuclear. All of these activities are drawing significant policy support at the state and Federal level, creating many high paying jobs and addressing important environmental challenges.
Strong Collateral and Asset Coverage
ECP targets assets underpinned by sufficient collateral value and contracted cash flows that result in strong downside protection and preserve the value of our investments. Energy infrastructure projects are comprised of tangible and physical hard assets that typically have high upfront costs which serve as barriers to entry, thereby defending value. In addition, these assets often generate revenue through inflation-linked contracts, which provide visibility on cash flow generation.
Investment Team
Firm-wide origination and diligence effort, coordinated and led by a dedicated credit team.