Alt. En. TMT: What's it looking like?
Hey guys,
I'm starting at a boutique bank in the summer, and I'm part of the Tech group. For this firm, tech encompasses quite a few different things - Alternate Energy and TMT, among a few other smaller industries. What do you think is going to happen to these industries as the year wears on? I've been hearing that quite a few smaller tech companies are running dry in cash and may be forced to make deals in the next six months or so, which would be really nice for my first-year bonus.
What do you guys think about the potential dealflow in these industries?
AE companies that can actually turn a profit without government subsidies are few and far between. I expect to see mergers of necessity in the coming years.
I worked in Renewable Energy Project Finance last summer, and I can say that it is a a very good place to be right now. Dealflow in the next two years will be substantial, definitely in DCM and ECM, and then in about 5 years there will be a lot of M&A. Either way it is definitely a good time to get to know how the industry works. Basically, as Excelster said without gov subsidies Alternative Energy doesn't exist, but in Europe they have many ways of making legislation so that bigger polluting companies can subsidize renewables. Using Green Certificates or feed in tariffs can provide incentives for big energy companies to build wind turbines.
All in all I would say this is a good place to be right now.
I'm in restructuring and we're signing up distressed alt energy (ethanol, biodiesel) plant deals like cray-zay
To put things in perspective, alternative energy private placements were up well over 25% this year, while the rest of VC/PP funding was flat or down. A ton of money from places like KPCB, Khosla, Sequoia, Virgin Green Fund, etc have been investing in these companies, and the new administration is likely to be super-friendly with this industry. Good place to be getting your foot in the door if your senior bankers have good connections within the industry.
Could any one list any of the major BB/MM/Boutique players in the AE space?
Thanks
alternative energy requires huge projects to be financed...it's not doing so well despite all that hype
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