Akuo Investment Management

In order to invest in the projects at this subsequent construction stage after completion of the development cycle, Akuo Energy co-founded AKUO Investment in early 2008 in order to raise, manage and invest the equity capital that is required by all projects internationally after they have cleared the development phase and are ready for financing, construction and operation. The first fund raised and managed by Akuo Investment is a Luxembourg SICAR called Akuo Investment S.C.A SICAR, regulated by CSSF in September 2008. The SICAR-specific management activities and the overall Akuo Investment management team is led by Stéphane Boudon, former president of Caisse des Dépôts Ixis Innovation funds. The initial 150M component of the Akuo Investment SICAR will be invested in projects based in the European Union (EU26). Significant additional capital has already been committed in order to meet the equity requirements of Akuo Energy in the United States, South America, Turkey and India, and the SICAR components are currently being prepared by Akuo Investment to accommodate this committed capital.

In addition, a number of selected private funds have committed to invest pari pasu along Akuo Investment in Akuo Energy projects so has to reduce overall risk by spreading their investment over a larger portfolio of projects.

Akuo Investment is the leading arm to raise and manage the 1.0bn equity needed over the next 5 years, and is a first class signatory helping to successfully secure the required 4.0Bn debt for Akuo Energy’s various projects around the world.

In the current difficult economic environment, banks are providing debt finance to renewable energy projects being managed by companies with proven track records. This creates a distinctive advantage for Akuo Energy, and currently the group finds itself within a restricted and privileged class of international development groups which are managing to secure long-term debt finance on attractive terms from top-tier banks.

The management team has already proven its success at rapidly generating value and healthy returns for investors with predecessor company Perfect Wind;

The team has already delivered an IRR of more than 100% to a “family office” that has been investing with AKUO since the very beginning. The founding members of Akuo Energy have invested a significant amount of their personal capital in the SICAR;

Investments in renewable energy projects have stable and transparent business models. The numerous government incentives give almost perfect visibility to cash flows over 15 -20 years. Moreover, feed-in tariffs are annually adjusted for inflation which makes such investments a very good inflation hedge. Finally, there is no client risk;

Investors in the SICAR will profit from the high leverage of the underlying projects. In general, such power generation projects are financed with 85-90% debt;

Renewables are a fast growing industry due to the climate change targets and policies;

We establish a floor IRR of 8% through the deal structure. The cash flow profile of the investments is very similar to that of a convertible bond;

The SICAR has priority access to all the projects developed by AKUO Energy;

Fees and costs transparency. Our fees are between 1,1%-1,4% depending on stage and size, no entry/exit fees, no hidden costs (fees pay for all recurring costs of doing PE business, legal, audit…).