The solar sector is highly attractive for private equity, offering:
- multiple value drivers for company investments
- stable cash flows allowing substantial leverage of park investments
- limited correlation with other asset classes.
In Germany, the solar market has reached “critical” size and has developed leading technologies in many areas. The market for solar energy is expected to grow further substantially over the coming years. In order to participate in this growth, companies must achieve an international reach and professional processes.
Established industry and technology with growth potential
Despite its considerable size, the solar industry is a comparatively young sector. Thus, there is still a great potential for technological developments in many areas. Solar companies offer many opportunities to improve operating results and, partially, there is need for restructuring and/or realignment of the value chain. At the same time, the sector is very fragmented with respect to its supply side structure and relatively unorganized with respect to the maturity of their business models.
Double digit returns for investors, no sales commissions
While applying defensive investment criteria, we target double digit returns for our investors. Our investment history complies with these benchmarks. SolarKapital transacts its investments in legally proven structures with low complexity (i.e. limited partnerships under German law). Premiums and selling commissions do not exist. Apart from a management fee, SolarKapital is only rewarded on a success basis ("carried interest").