Investment Strategy

 

P/S BankInvest New Energy Solutions is focused on three important areas within the energy sector: Renewable energy, distributed energy and ways of making the traditional energy sector more effective.

In terms of investment we primarily focus as follows:

Denmark has for a long time been an international front-runner in the development of sustainable alternative energy solutions. A good example is the wind industry development in Denmark. Along with its neighbouring countries it offers many interesting investment opportunities and considerable un-utilised investment potential. The objective of P/S BI New Energy Solutions is to identify this potential and support entrepreneurs in building successful businesses.

The venture investments within the alternative energy sector in USA is now about $500 million per year and represents more than 2 percent of the entire value of US venture investments. In Europe, the venture investment in this space is about $100 million per year and on the increase.

Development in technology and strong capital investment have already helped in making the alternative energy investment space, such as fuel cells, micro turbines, wind and solar power increasingly more competitive compared to traditional energy production and distribution. Significant cost reductions have been achieved through material science, higher power efficiency levels, system integration, volume production and much lower disposal and recycling costs. We believe that this development will drive the new emerging alternative power technologies faster towards full commercialisation and they will take an increasing market share of new installed power generation and distribution.

P/S BankInvest New Energy Solutions only makes equity investments and will not provide other forms of financing such as single project financing. The investments usually take place through the issuing of new shares to allow the full proceeds from the investment to accrue to the portfolio company. As a principal rule, P/S BankInvest New Energy Solutions does not seek to purchase existing shares.

When investing in promising portfolio companies, a future sale of the company has to be taken into consideration in the investment decision-making process. The crux of the matter is therefore that the company at a later stage will be attractive for a company within this business sector or sold with a profit through an initial public offering.

The P/S BankInvest New Energy Solutions investment focus:

The Fund's investment focus is for start-up and/or early expansion financing based upon a credible business model and development plan for proprietary products and services:

P/S BankInvest New Energy Solutions Investment focus
Seed/ Research	Start-up Financing	Early Expansion Financing	Late Expansion Financing	Bridge Pre-IPO Financing	Independent Company financing

P/S BankInvest New Energy Solutions invests in unlisted companies in their early phase of development, focused on new energy solutions and offering a considerable growth potential and with a plan to exit through trade sale or stock exchange listing (IPO)

Geography

Investments will primarily be made in companies domiciled in Denmark, secondarily in Sweden, Norway, Finland, Germany, the United Kingdom, Ireland, Switzerland, France and Benelux. P/S BankInvest New Energy Solutions will occasionally invest in companies in North America, with local VC firms familiar to P/S BankInvest New Energy Solutions, which will take the lead investor role.