Crescent Capital

Investment Environment

There are massive investment needs for energy and infrastructure in the target region:

  • Large-scale and fast growing demand for energy and infrastructure investments in the target region due to deferred investments, convergence with developed markets, urbanisation, and demography.
  • Growing investments in renewable energy due to power demand, as well as improved awareness on climate change, regulatory requirements, and downside protection through a well-structured tariff mechanism.
  • Turkish Government implementing a highly successful strategy to mobilise large-scale private capital to infrastructure finance through PPPs, concessions, and privatisations.

There is high demand for equity with sector expertise:

  • Local investors and developers willing to partner with financial investors that could bring in additional equity, expertise, industry network and help raise debt on a limited-recourse basis for projects or acquisitions.
  • Strong interest from global strategic sponsors (which have saturated home markets) to invest in fast-growing emerging markets, which in turn generates attractive exit opportunities for financial investors.
  • Lenders becoming more demanding in their cash equity requirements from project sponsors, which in turn increases the need for equity from financial investors.

There is a unique opportunity to place large-scale capital and access long-term stable returns:

  • Relatively limited local sources of independent equity.
  • Rapid accumulation of capital in resource-rich economies seeking stable, long-term investments in the target region for portfolio diversification.
  • Increasing appetite from financial investors for energy and infrastructure assets which have a low correlation to other asset classes, providing both long-term stable cashflows and early exit opportunities following value build-up.