If green energy is going to succeed it has to become more than just a movement, it has to become business. If big-wigs in the financial sector see that it’s possible to make money off of green energy then it’s much more likely that things will finally move forward.
The good news is, it is starting to look like energy is
getting noticed. Private equity firms
like Blackstone Group, Carlyle Group, and KKR are moving forward to raise money
for investments in energy ever since the financial crisis froze credit markets
in 2008. It was around that time that
KKR started their Green Portfolio by partnering with the Environmental Defense
Fund.
The partnership has been going amazingly well, generating
almost $365 million in cost savings according to KKR’s recent report.
These improvements are, “good examples of how smart
companies can cut costs and support the environment,” explained head of global
public affairs Ken
Mehlman.
Recently, KKR announced that it has gathered about $4
billion to invest in infrastructure and energy deals. Not all of this is new, of course. KKR has been investing in energy deals for
more than two decades, partially because cousins Henry Kravis and George Roberts have
family in the natural-resources industry.
Even better, private equity groups seem to be moving beyond
the United States when it comes to the environment. When KKR entered in a partnership with United
Envirotech Limited of China, David Liu, Member of KKR and CEO of KKR Greater China explained how they were looking
forward on working on environmental initiatives in China.
The Blackstone Group, meanwhile, announced in April that
their new energy fund has accumulated about $1.5 billion in committed
capital. Earlier, they created a new
business group that is focused on investments in the cleantech energy sector
and on providing advice on renewable energy strategies.
0 Comments