Risk Appetite Statement
The firm’s articulation of the types and levels of risk it is willing to accept in pursuit of its objectives.
1. Purpose
This statement defines the firm’s risk appetite and the boundaries within which it pursues investment and operational objectives on behalf of the funds.
2. Philosophy
The firm invests in long-lived energy infrastructure with contracted, inflation-linked cash flows. It accepts measured, well-understood risk where it is compensated, and avoids speculative exposure to commodity prices and merchant volatility where possible.
3. Investment Risk
The firm favors assets with creditworthy offtake, conservative leverage, and high switching costs. It sets guidelines for counterparty credit quality, contract duration, technology maturity, and construction risk, and stages capital against milestones.
4. Concentration Risk
The firm monitors concentration by sector, geography, technology, and counterparty, and manages exposures within documented limits appropriate to each fund’s mandate.
5. Leverage Risk
Leverage is used prudently at the fund and asset level within defined limits, with attention to refinancing risk and interest-rate sensitivity.
6. Operational Risk
The firm manages operational risk through documented controls, qualified service providers, business-continuity planning, and cybersecurity safeguards.
7. Compliance & Regulatory Risk
The firm maintains a compliance program designed to meet its regulatory obligations and monitors policy and regulatory developments affecting energy assets.
8. Liquidity Risk
The firm manages fund liquidity to meet obligations and expenses, recognizing the illiquid nature of the underlying assets and the long fund term.
9. Monitoring & Escalation
Risk is monitored on an ongoing basis, with escalation to senior management and, where appropriate, the Limited Partner Advisory Committee. This statement is reviewed at least annually.
Notice
This document is a summary of the firm’s internal policy as adopted by the approving body identified above. The complete policy as adopted governs in any case of conflict between this summary and the underlying policy document. Limited partners and other authorized parties may request the full policy from the policy owner. This document does not create contractual rights, employment rights, or third-party beneficiary rights, and may be amended at any time by action of the approving body.
Questions about this policy should be directed to [email protected]. Confidential or anonymous reports may also be made through the channels described in the Whistleblower Policy.
Questions about firm governance
Limited partners, regulators, and counterparties with questions about firm governance, policies, or compliance should contact [email protected].