F4 Markets
Thesis
Marketplaces connect economic traders that are otherwise unconnected, which unlocks economic wealth that otherwise does not exist, thus creating money out of nowhere.
There is an opportunity to create a marketplace for energy assets in the US, primarily in operating solar.
Transactions today in solar and renewables are still largely offline – a marketplace creating online access is far more attractive to potential market participants and provides clear benefits. Markets of industries that undergo digital transformation experience massive growth.
Ø We are creating a market where we will be both a buyer and seller.
Ø The market has $140 billion in it.
Ø We will digitize the market, which always drives up volumes.
Ø We are acquiring assets which are highly sought after for yield and for ESG.
Ø Disintermediation due to technology and consumer behavior - powerful trends.
Solar in the USA
Ø Grown from 1,000 MW to 95,000 MW in last 12 years.
Ø 95,000 MW represents roughly $140 billion of invested capital.
Ø Secondary markets growing due to tax recapture and original investor exits.
Ø Secondary markets competitive and efficient at institutional scale, opposite for smaller assets.
Ø Opportunity to digitize the marketplace will grow volumes.
Ø No central pricing or central markets creates index and arbitrage opportunities.
Marketplace Benefits
Anonymous and non-binding participation
solid origination via traditional and digital means
>> rapid close through digital processes, digital reduces costs, increases speed and scaling
>> front-load asset data to invert traditional underwriting and due diligence
>> anonymity and non-binding marketplace structure encourages participation
The World - Infrastructure Assets in Transition
On the left... capital seeking yield
Banks, insurance companies, pensions, hi-net worth investors
On the right... projects seeking to sell (in various markets)
All projects "post-recapture" seeking to monetize their long-term contracts.
In the middle... intermediation (JJR)
JJR provides pricing information, liquidity, asset management and other services to each sector.
All the sectors get "optimized"
Buyers and sellers get better prices, assets operate more efficiently.
Acquisition Criteria
We wish to acquire projects or portfolios, whether operating (or in development).
Projects of Interest:
- Single projects or portfolios from 100 kW to 5,000 kW
- Solar PV, fixed-tilt or with trackers, with or without storage
- Ground-mount, rooftop, carport
- Community solar
- Creditworthy offtaker(s)
- US-domiciled
Capital Markets, Pool and Fund Activities
Extensive Commodity Experience since 1981
Former Cargill member, Chicago Board of trade, Chicago Merc, Mpls. Grain Exchange. Former member MAPP, MISO, PJM, ISO New England, NY ISO.
First fund 1995-97 - Energy trading and power marketing founder and principal
1998 - Gigabit Ethernet founder, five cities
2004 - Founder and CEO, Power construction firm (FPD Power)
2006-2009 - General Partner MHP LP, LMP fund
2010 - Founder, CAP Solar operating Solar (New Jersey)
2011 - Extensive solar development across the USA
JJR ECOSYSTEM
Each quadrant lives inherently with the other.
Our experience in energy markets, assets and financing over the past 23 years have given us relationships, insights and humility.
Experience, Resources
Thirty Years of Experience
Power
25 years of experience in power markets across the US
Nat gas, solar, MISO, PJM, finance, construction and develoment
Finance
Funding energy asset deals since 1995.
Power marketing, MAPP, MISO, PJM
Portfolio development, solar, USA-wide
Current Resources
Assembling $50 million acquisition fund with institutional investors for secondary market acquisitions
