Strategy

EIG is an active investor in its technologies.  As such and unlike many VC funds, its main strategy for creating wealth is generally not to license its intellectual property, but rather to use it to secure substantial stakes in energy projects which can last for 20 years or more.  This approach aims to secure long-term cash flows that can be paid out as dividends, securitized and sold to the capital markets, or allow an underlying business to be floated on a stock or sold to a trade buyer.

There are strong reasons for EIG’s success in securing promising technologies.  First, all three of its principals have a background in the energy industry as well as first-hand experience in putting deals together in the challenging markets of the developing world.  By contrast, early stage technology companies often have terrific science, but little experience in marketing their inventions.  Using its broad industry contacts and sales and negotiation experience, EIG can offer its technology companies a credible pathway to commercialization and the accompanying rewards.

For project sponsors, such as oil field owners or solar park permit holders, EIG offers a compelling formula of both cutting edge technology and the capital to deploy it.  Pilot plants and first projects exploiting a given technology are expected to be funded mostly or completely with equity.  Thereafter, the technologies will allow some level of commercial debt or project finance.  Crossing this financing hurdle is important for the Company’s growth, since energy is a capital-intensive industry.

EIG’s conviction is that value is best created by de-risking a technology and then proving that it is commercial viable by developing a series of cash generating projects.  For this reason EIG seeks technologies that have been demonstrated in the laboratory or via a pilot plant and ready (or soon ready) to be placed in the field.