NOTE: To protect client confidentiality under executed Non-Disclosure Agreements, our case studies do not include the names of specific clients or products.

About the Client

Our client is a prestigious Global Asset Management company wielding substantial influence in the financial sector with over $600 billion in Assets Under Management (AUM). Renowned for its robust investment strategies and diversified portfolio, the client maintains a significant presence in the energy investment space, focusing on acquiring and managing valuable energy assets worldwide.

Objective

The client was given an opportunity to acquire a portfolio of natural gas power plants within the United States. These assets were considered financially distressed but potentially undervalued in the current energy market. The primary objective was to thoroughly evaluate the portfolio to ascertain the overall value, encompassing current operations and future revenue prospects tied to wholesale power markets.

Solution Provided

Vedeni Energy, LLC was enlisted to deliver a comprehensive market performance analysis. Our team of experts developed a tailored approach to project the 10-year revenue streams from these assets. The assessment included:

Detailed analysis of existing Power Purchase Agreements (PPAs) to forecast long-term revenue stability.

Evaluation of Capacity Market payments, assessing historical data, and projecting future trends.

A speculative analysis of potential income based on real-time energy market participation, considering market volatility and regulatory changes.

Our proprietary financial models and industry insights were instrumental in painting a realistic picture of the potential financial performance of the power plant portfolio.

Results

The market performance analysis conducted by Vedeni Energy provided the client with an in-depth, data-driven valuation of the natural gas power plants. Our report revealed revenue opportunities not previously factored into the market’s valuation of the distressed assets. Equipped with this knowledge, the client successfully leveraged the information to negotiate the portfolio purchase at 25% below the projected market value. This acquisition advantageously positioned the client in the energy sector, enabling them to expand their asset base with a strategically sound investment backed by Vedeni Energy’s expert analysis.