What We Do

The Aligned Intermediary (AI) is an investment advisory group created to help
long-term investors (LTIs) — sovereign funds, pension funds, endowments, financial institutions, insurance companies, family offices, and foundations — accelerate and increase the flow of private, for-profit capital into climate infrastructure projects and organizations in the areas of clean energy, water infrastructure, and waste-to-value.

To date, six LTIs have committed to deploy over USD 1 billion into transactions identified by Aligned Intermediary.

 

Current Partners

Regents of the University of California – university endowment

New Zealand Superannuation Fund – sovereign wealth fund

TIAA Global Asset Management – financial services group

Ontario Public Service Employees Union Trust (OPTrust) – pension fund

Wellcome Trust – charitable trust

Church Commissioners for England – faith-based organization

 


Our Approach

Aligned Intermediary guides LTIs around all levels of capital investment in the climate infrastructure space; early-stage, growth and project finance.

We source, screen, conduct due diligence, and structure transactions that satisfy specific goals related to risk-adjusted financial rates of return for our LTIs. We also assist in deal monitoring and facilitating post-close value-creation for the life of an investment.

Specifically, we:

  1. Source deals
  2. Perform due diligence of projects and companies
  3. Structure deals
  4. Monitor deals (portfolio/asset management)
  5. Supply research and analytics
  6. Provide fiduciary management services

ORIGINATION STRATEGY

Aligned Intermediary sources unique transactions from around the world that its Members would not otherwise see through its network of companies, developers, banks, government programs, and other co-investors. To mitigate risk for Members, Aligned Intermediary will often pursue opportunities that have either co-investment from established non-Member institutional investors or participation from strategic non-institutional investors.

Aligned Intermediary is focused on sourcing direct investment opportunities (debt and equity) in traditional clean energy deployment, high growth-equity opportunities in emerging markets, and new technology companies. We focus on transactions with a minimum investment size of USD 25 million and seek competitive financial returns on a commercial basis (i.e. currently we do not facilitate concessionary capital).

COMPLEMENTING, RATHER THAN COMPETING WITH, EXISTING STAKEHOLDERS

Aligned Intermediary collaborates with a broad range of other actors involved in climate infrastructure, including:

  • Privately-owned companies looking for minority investor capital
  • Project developers
  • Commercial and investment banks
  • Multilateral banks and development institutions such as the World Bank and GEF
  • Government officials and policymakers
  • Investor-owned and municipal utilities in both water and electric power
  • Independent power producers and publicly-traded “Yieldcos”
  • Private equity and infrastructure funds
  • Non-governmental organizations

Importantly, we are not seeking to compete with existing banks or asset managers. To the contrary, we believe there are attractive investment opportunities that are not being ‘banked’ due to difficulties around scale, time horizon, and the mispricing of risks in the marketplace. As such, we tap our vast global network to facilitate investments in, and be a matchmaker for, the very best opportunities meeting our LTI partner requirements.

 


The AI Advantage

Aligned Intermediary seeks to bolster the capacity of LTIs so that they can deploy capital more efficiently into climate infrastructure investments. Rather than provide financing directly, Aligned Intermediary will reduce information asymmetries and transaction costs with the goal of driving greater LTI investment into climate solutions.

AI is unlike all other intermediaries in the climate infrastructure space as we:

  • Serve as a shared platform to LTIs, greatly minimizing the resource requirements they face when contemplating direct investment programs, especially in the complex areas of climate infrastructure projects and companies.
  • Operate as a fully “honest broker,” with staff compensation linked to long-term value creation for investors. Aligned Intermediary is not motivated by fee generation and operates “at cost” as a Public Benefit Corporation to ensure that its incentives and activities are aligned with those of its Members.

By helping our Members to achieve strong financial returns, we seek to bring climate infrastructure into the mainstream of institutional investor portfolios.


Why Now

To avoid the most dangerous impacts of climate change, 174 nations have formally endorsed a goal of limiting the future increase in global average temperature above pre-industrial levels to 2 degrees Celsius (2°C). The International Energy Agency (IEA) estimates that achieving this 2°C target will require an additional USD 40 trillion of investment over the next 35 years – beyond what is projected to occur in a business-as-usual scenario – in order to decarbonize the global energy system. This need for additional investment extends to every sector of the economy, from power generation to transport.

The AI believes there is a tremendous financial opportunity to be had in meeting this urgent need by the community of long term investors, who command more than $80 trillion of investable capital, according to the OECD.

Our Team

We are currently in the process of building out the full AI staff.

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