Augusta provides M&A and corporate finance advice to its clients across Europe, raising equity and debt capital or selling projects and companies to maximise value for developers, IPPs and utilities. We have worked extensively on each of the phases of renewable energy projects, including development, construction and operation.
Building or unlocking value at each of these phases requires very different qualities. For example the development experience of a management team, the contracting structures of projects that are ready-to-build, and the operation and maintenance frameworks and eventual re-powering potential of a mature operating portfolio.
Augusta routinely covers the project finance requirements of its clients on all projects. This can involve just advice on or the adaptation of the optimal debt structure in an M&A or capital raising process or can be a full debt raising process itself as a stand-alone mandate. Every M&A process involves an in depth modelling of the debt structure in order to properly value and model the project and therefore Augusta deals with debt advice and structuring on almost every transaction.
As part of its capital raising or M&A mandates, Augusta has sourced and negotiated PPAs with a broad range of offtakers, from utilities through market-makers to corporates seeking green branding opportunities and industrials looking for long-term power contracts. These services are most relevant in ex-subsidy markets such as the UK or markets where there is a substantial merchant component to a project’s power offtake that needs to be contracted in order to secure the best terms from equity and debt. This is a growing area for the sector and for Augusta and we have been leading the development of the industry away from subsidies and into the corporate power purchase market for a number of years. In 2015 we succeeded in negotiating the first PPA under one of our mandates and unifying both the demands of the corporate off-taker and investors’ requirements under the sales process. This was the PPA our client Zephyr signed with Google for the 160MW Tellenes project in Norway.
Augusta provides specialised consultancy services to its clients primarily geared to specific equity or debt financing issues, the assessment of commercial market strengths and the potential for growth through mergers and acquisitions or other corporate finance measures. In most cases such a consultancy mandate is the pre-cursor to a strategic sale mandate at a later date.
Our consultancy activities complement and extend the detailed technical and management consultancy services provided by well-established consultancy groups, with many of whom we cooperate closely to provide a complete picture of a market and its plausible points of entry.
We have recently conducted a detailed European country-by-country market analysis of independent onshore wind developers for a Far Eastern client, assessing the relative attractions of different markets, the strengths of selected players and providing a range of potential acquisition candidates.
We have also recently conducted a comprehensive analysis of the offshore wind installation vessel market, assessing the levels of profitability, supply and demand characteristics and trends, as well as leading market player evaluation for each individual segment of this specialised but growing market.