Driving local participation

Here is a breakdown of what the fund is and what it’s not. The information was contained in a press package given to reporters at the launch.

Would energy investments complement our existing businesses?
In keeping with our history of exploring, developing and pioneering new business opportunities, we have set our sights on participating in this exciting upside. While the energy sector may seem far removed from our insurance, banking and asset management businesses, our proposed approach to investments in Energy will actually complement existing product offerings, leverage our strengths in risk appraisal and investment management, and boost our returns on shareholder capital. GHL’s investment of shareholders’ funds in this venture is distinct from policy holders’ funds, which will continue to be managed with the usual prudence and professionalism that our customers have grown to expect.

How do we plan to invest in the Energy Sector?
GHL and RBTT have committed to co-invest capital in an unlisted company and provides long-term, committed capital to help unlisted companies grow and succeed. It is “patient capital,” and would provide additional local financing options to energy sector entrepreneurs and project developers. These sources of capital would complement bank debt and bond financing currently available domestically. This is yet another example of GHL and RBTT’s drive to continuously innovate to meet the needs of the markets we serve.

PROMETHEUS Energy Partners will consider investments in the upstream, midstream, downstream, power and service sectors in Trinidad and Tobago, and the wider Caribbean region. PROMETHEUS will take either minority or controlling interests in the companies in which it invests. Our existing professional resources in corporate finance, investment appraisal, business advisory, and fund management will serve as managers. An Advisory Board of energy sector experts will complement this internal expertise. It is projected that US$12 billion will be invested in the TT energy sector over the next five years. Of this amount, an estimated deal pool of US$1 billion will be accessible to local financial equity investors such as GHL and RBTT.

How do PROMETHEUS Energy Partners differ from the other “energy funds”?
Unlike other “energy funds” being touted in the market, PROMETHEUS is a private equity portfolio representing GHL’s and RBTT’s projects or companies. PROMETHEUS is not a mutual fund; it is a mechanism to provide the energy sector with local capital and ownership. We are not selling securities; we are investing and providing a much-needed alternative source of financing for the local energy sector.

What characteristics are we looking in for in an Investment?
•Talented and experienced management teams with a sterling reputation and entrepreneurial spirit.
•New ventures that are market-oriented with a comprehensive and thoughtful business plan.
•Established, operating businesses with tested business models and sustainable competitive advantages in attractive, growing markets.
•Ventures with the potential to generate higher than average returns on invested capital.
•Leaders in the market(s) they serve, or clear potential to become one.
•Viable future exit alternatives, either through a public offering, private placement or leveraged recapitalisation.

How do you apply for funding?
There is no standard application form for PROMETHEUS Energy Partners financing. Companies or entrepreneurs seeking to set up new ventures or to expand existing enterprises should make direct approaches. Do so by requesting a meeting and (I) emailing/faxing us the preliminary project fact sheet or (ii) submitting your project proposal. Once the project meets preliminary review criteria, a detailed business plan or feasibility study is required to proceed to the next stage.

The evaluation process includes assessments of the technical, operational, financial and economic aspects of the project or business model, visits to the company site (where applicable) and meetings with the project sponsors. If the project passes this initial screening, we will then enter into negotiations of the key terms of the agreement. The proposal will then be taken to the PROMETHEUS Investment Committee for approval. Once approval is granted, we will finalise the required documentation and disburse the funds in accordance with the negotiated agreement.

What’s next?
Of the US$10 billion of non-bank institutional capital in the country, we present the first Private Equity Energy Portfolio in the Caribbean. As pioneers in the Caribbean financial sector, we believe that we have a critical role to play in driving greater local participation in the energy sector and a broader distribution of the wealth created by our national patronage. We believe that PROME-THEUS will lead the way in attracting greater amounts of local institutional and private capital into our increasingly important energy sector and we appeal to the regulators to help facilitate this.