In the past, setting up such businesses was done by individuals who would put together some capital, choose a management and then select some drilling locations, usually in their proximity. Almost the entirety of these companies were based in North America. Small explorers were usually acquired by other firms and they would tend to go public, a decision which usually results in decreased appetite for exploration, since the focus would be on returning as much capital as possible to shareholders.

Factors such as the perceived end of the need for fossil fuels and lack of adequate communication and exposure of information to the general public, has resulted in diminished investment interest in the sector that provides the cheapest baseload energy.

Globally there is a shortage of geoscientists and engineers, let alone financiers with technical knowledge who could make the case in front of investors.

So that’s why more than 95% of exploration projects are carried out by very large multi-national companies (IOCs), or state-owned behemoths (NOCs), which because they are so large, they function as their own bank.

But investing in major firms has limited upside potential when compared with growing a young company.

A discovery made by a large firm is important. A discovery made by a small firm will undoubtedly have more impact on its shareholders.

This is the world’s first energy investment fund with central focus on the exploration phase. We are in for the long term and understand the fact that this industry can only be international, meaning that there’s a necessity to adapt and work in different jurisdictions with their own business, legal and cultural particularities. As opposed to investing in publicly-traded firms, ALVERADA is an opportunity to gain direct access to various projects at different maturity levels.

ALVERADA is headed by geoscientists and engineers turned financiers, open-minded and eager to undertake and finance promising projects internationally, provided that there are no major hindrances to this (sanctions, security issues).

As the bespoke financing arm of KAREDA, we are fully responsible for sourcing investors, disseminating information to the general public about the energy financing and investment process, as well as ranking and selecting those projects that we believe will yield the highest returns.

Even if KAREDA is and will be the core of our business, any small- and mid-sized business is invited to propose us deals.

Our internal IT teams are working to implement systems that will make it easier for individuals and institutions to contribute to the financing of projects that make it through our screening criteria.

The firm was created from the belief that after several generations of oil&gas professionals, we will be in a much better position to understand how to evaluate and discover potential, based on technical, financial, and some other aspects that nowadays constitute the know-how that our team possesses.