Staying Ahead of the Curve - Renewable Energy Future?

Many of the finance / investing magnates got their big break by being ahead of the curve or simply being in the right place at the right time. If you were a trader at a bank in the mid 70s, you likely made a boatload of money in the 80s when that business took off. Similar situation to when Institutional Private Equity took off in the mid to late 1980s, Tech in the early 2000s, you get it. The guys that were involved in those fields before the explosive growth typically made tons of money.

So my question is, why aren't more finance students today dying to get into renewable energy investing? If you're in your 20s now, surely there will be an explosive growth period at some point in your career. And you'll already have the requisite experience to capitalize on this growth. I'm not talking about growth in return levels - I mean the number of renewable projects should increase and capital that wants exposure to these projects should increase implying AUM growth / Fee Growth for the PE Funds and Banks. Here is a Forbes article discussing renewable energy growth by 2040

I ask this because I work in real estate, and at times I feel like I missed the boat. There were record levels of institutional capital raised for REPE funds in 2018 meaning right now is a great time to be involved in the space, but it's the senior guys who are raking in all the fees. If you want to truly capitalize on these highs you need to have been in the business 10 or 20 years ago - before it was mainstream.

So am I crazy? Is getting into the renewable energy world a good idea now? Did that explosive growth that I'm talking about already happen? Would love to people who work in the renewable energy world or are knowledgeable on the subject

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Comments (5)

  • Associate 2 in PE - Other
Dec 28, 2019 - 1:36am
JSmithRE2010:

Bump, no renewable energy guys?

Renewables do not really have the proper risk/return profiles in the US right now.

In Europe/Asia/Australia there is a ton more activity. Get the experience abroad and come back if you are American.

  • Prospect in AM - Other
Dec 28, 2019 - 11:14am

Interested in this as well, most of the renewables finance work seems to be project financing for renewable energy projects. Can anyone provide any commentary on this type of renewable energy project financing and how it is viewed? Exit opportunities?

Most Helpful
Dec 29, 2019 - 12:51am
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