Investment
Philosophy
With resource scarcity and environmental degradation driving modernization within the global energy industry, there exists an ever-increasing body of investment opportunities for astute investors with knowledge of and access to the renewables sector. To achieve superior returns in this space, however, investors must possess a fundamental understanding of renewable energy technology and energy markets, close working relationships with actors players throughout the industry’s value chain, and experience executing power generation projects. With demonstrated expertise in both finance and renewable energy generation, Torchplus Capital’s team is uniquely suited to succeed in this capacity.
Core Values
To ensure the highest quality service and strongest investment returns, Torchplus adheres to the following set of core values:
-
Access: identify and pursue first-class deals by maintaining active relationships with top-tier partners and operators across our extensive global network
-
Diversification: mitigate risk and enhance stability of returns by diversifying investments across sector, size, and geographic region.
-
Due Diligence: deliver top quality service by conducting rigorous due diligence and comprehensive research into each individual investment
Strategy
Torchplus Capital’s investment objective is to generate both current fixed income and capital appreciation growth through a combination of value income and income value investing.
Torchplus Capital provides equity and structured debt finance to renewable energy infrastructure projects. We seek project investments that are both in the early and later stages of development. Primarily focused on the solar power sector, our sector focus will continue to expand and evolve over time to cater the market sentiments.
Torchplus prefers to invest in projects that utilize proven technologies with long track record, maintain long-term contracted highly predictable revenue with creditworthy counterparties. We provide financing to experienced developers who often find it difficult to secure capital for their projects, or whose projects may fall outside of the range of other energy and infrastructure funds.
Torchplus focuses on segments of the energy industry where significant change is underway and where the team has a clear edge by virtue of its experience and its sponsor base.
Torchplus Investment Edge
Approach
Torchplus Capital utilizes both comprehensive macroeconomic research to employ a top-down approach and microeconomic research to employ a bottom-up approach to identify safe investments that demonstrate exceptional attractive risk-adjusted returns.
The current target allocation for the Torchplus Capital renewable energy infrastructure fund is approximately 40% US projects, 40% in Japan, and 20% across Southeast Asia.
Typical Solar Project Investment Cycle
Solar Investment in Japan
Japan is a mature energy market. Through the start of the FIT system, Japan has a CAGR of 29.4% which represents the highest growth in the world of solar. With the nuclear power plant incident, the policy makers are pushing renewable energy aggressively.
Torchplus is taking the advantage of high FIT system to develop and finance solar projects in Japan. With our proprietary equity and debt structuring, tax planning and detailed due diligence and foreign exchange hedging strategies, we provide to our investors steady contracted cash flow.
