We are fundraising specialists that help private companies and governments raise capital for their petroleum operations. Our services are highly customizable to cater to the particular needs of the situations the clients find themselves in.
You can find more about the investment process here.
The default option for investors is to pool their money together in the main fund, and let the investment committee decide on its allocation. The other option is to use the direct investment scheme, if they have a preferred project.
A placement will typically include the following steps:
ALVERADA is using an open-ended fund in order to make placements as they come.
Technical evaluation will be carried out by KAREDA.
The firm is centered on exploration (which is a form of venture capital), however, we can also arrange for buyouts (M&As) and growth capital infusions.
We are aware of the fact that many companies cannot obtain loans for their petroleum operations, either because of banks’ own restrictions towards the oil&gas industry, or because of their geographic area of activity or incorporation, where access to capital is very hard.
As such, we can act as a middle-man, whereby we prepare the loan application and submit it to the banks within our network. For this process, we will use KAREDA’s assets as a collateral and we will act as guarantor.
The receiving company will have to pay back the loan, the interest, and our fees.
For intermediated loans, the capital amassed within the fund is normally not used in this case.
There is also the possibility of issuing loans in our name from the fund.
This is for projects where we are invited by another institution to supplement their capital in financing high-potential companies or exploration perimeters. It will be both for early-stage exploration projects, as well as Merger&Acquisitions (M&As) of mature assets.
Money used here is from our fund.
We have noticed another niche we could fill.
In some parts of the world, it is difficult to finance and grow even world-class assets, primarily due to the unwillingness of firms or banks in venturing in risky jurisdictions.
While some places are indeed off limits, we are allowed by our investors (mandatory clause within the Partnership Contract) to finance frontier and emerging hydrocarbon nations, whereby we negotiate direct agreements with governments, and can even impose changes in legislation that pertains to mineral resources and foreign trade and payments.
The money used here is from our funds, but in some situations we could also intermediate government-to-government placements.
Geothermal power generation is the only economic renewable energy class that can be deployed on a wide scale.
That being said, investors should know that subsurface teams have the transferable skills to work on both conventional hydrocarbon reservoirs and apply the same knowledge to high enthalpy geothermal developments. Essentially the only difference is in the reservoir engineering analysis, which in oil&gas deals with dual phase flow, relative permeabilities, fluid PVT and material balance.
Finding geologies with optimal conditions helps in advancing project economics. So, from a viability point of view, high-temperature high-permeability sedimentary structures (or fractured igneous rocks) at shallow depths will be preferred.
From a private equity point of view, such projects should be developed and sold to power companies in order to have the shortest payback time.