Energy Infrastructure Partners (EIP)

I don’t have any personal run-ins with EIP, but I poked around some recent articles and other websites in German  that might give you a clue about what’s up with them. They’re hyping up this big move where they grabbed a 16%, to get to total 65% stake in Baywa r.e.—some energy platform tied to the messed-up Bavarian Baywa group—with a 150 million euro cash dump. EIP’s boss Roland Dörig is all about how they’re gonna make it a cash cow with wind and solar stuff. But the articles throw up some sketchy vibes that kinda match those bad reviews you’re seeing online. Bear in mind Baywa AG is publically listed, owns the majority in Baywa r.e. and is currently in restructuring because of Baywa r.e.'s debt. Total market cap is 300M but EIP is buying 16% in a division of the group for 150M. They could have bought 50% in the total group which would have given them 25% instead of 16%, plus the other divisions, which seem to not have caused the restructuring of the whole group in the first place.

Their money moves look also dodgy. Back in 2023, they apparently jacked up their Baywa r.e. value by 35% apparently—530 million originally to almost 800 million euros—even though Baywa r.e.’s profits crashed 95% and most of its little companies were bleeding cash. They explained with “future growth” and some solar trading sale that’s still not done, and that unit seems to be selling solar PV units, which are worth peanuts now as the market is flooded with newer cheaper Chinese modules. Also, while they were pumping up their internal NAV, most infra funds were doing the opposite  ‘cause risk-free rates spiked and higher WACC meant valuations were flat at best, or more realistically getting cut. Now their latest numbers after the deal make it look like that boost was hot air. Might explain why people online are griping about shady stuff.

Then there’s the people mess— bunch of VPs, Directors, and Associates from the investment team left, and they canned their Head of Risk and Compliance plus two portfolio guys, who were in charge of their internal NAVs. Oh, and one of the two Managing Directors sold his shares to Dörig and bolted. That’s a big yikes when they’ve only hit 1 billion of a 6 billion fund goal. Ditching like that when there’s AUM cash on the table? Smells like he’s done with a sinking ship.

Between public articles and the other reviews like glassdoor, it looks like it’s scrambling to stay above water with dodgy finances and people jumping ship left and right. If you’re thinking of messing with them, I’d watch out and dig into those bad reviews—seems like there’s something rotten. Anyone got stories to spill?