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Structured Financial Solutions

Catalyst Development Capital LLC

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Project Development in the Americas


The Opportunity

Global investment in energy jumped 32% in 2010 to a record $211 billion, with investment in South and Central America alone rising 39% to $13.1bn. The 2012 budget in the US has $3.2bn allocated to energy efficiency and renewable energy programs. One of the most attention-grabbing facts buried in these statistics is that the sharpest gains were in small-scale projects, where the year-on-year increase in investment was up 91% in 2010.

Furthermore, as energy production is becoming more localized and more grass roots focused. MaxEn Capital Advisors has been approached by developers from all parts of the Americas with viable, income producing projects. We have found that these candidates are often missing a critical ingredient – an ingredient we can provide: the capability to take projects through development, financing and commercialization. Together, we are responding to these market signals and needs by sponsoring Catalyst Development Capital, LLC (the “Catalyst Fund”) – a $60 million project development fund.

Our Advantage

Catalyst Fund combines skilled and experienced professionals from the project development world with fund management and project finance expertise. Our project development team alone has over 150 years of hands-on experience in developing working energy assets. The professionals who serve on our Investment Committee and as Advisors have the hands-on experience to take these smaller scale projects from the development phase into the commercialization phase, and to secure project financing to launch. Our objective is to combine our investment and project development expertise to kick-start small scale alternative and renewable energy projects, reduce the risks associated with a project’s development phase, and generate higher than average returns to our investors.

Investor Returns

Investor returns are generated in two ways: (i) interest on development loans that will be paid by the developer (borrower) for development expenses through to project finance closing and, (ii) the Fund will structure an equity kicker – in the form of a put – which is basically a premium paid to the Fund for de-risking the project.

Revenue streams are expected to produce:

  • A targeted return of 12% on funds invested – to be paid to investors quarterly
  • Receipt of premiums for de-risking the project
  • Overall targeted IRR of 18% -25%

Income above the 12% quarterly return will be distributed 100% to Investors until return of all capital and thereafter 80% to Investors and 20% to the General Partner.

Fund Characteristics – Highlights

  • Catalyst Fund is a $60 million Fund with a minimum investment of $5 million to be drawn down over a 2 year period.
  • The term of the Fund is 7 years, subject to two, one year extensions.
  • The General Partner’s investment will represent at least 3% of total commitments.
  • Management expenses are limited to 2% of committed capital.
  • Investment will be in renewable energy, natural resource and related infrastructure projects.
  • Investors (Limited Partners) have the first right to invest in projects following the development phase.

Our Team

MaxEn has assembled a team of project and fund specialists which possess a unique set of skills, experience and capacity to take projects through to financial close and on to successful operation. “Science experiments” are not eligible for our investment. Catalyst Fund focuses on proven technology and leaves early stage development to venture funds. Only technologies and business plans which have the potential for commercialization and scale are considered – projects that allow the Fund to bring to bear its considerable expertise in project finance, renewable energy, energy production and related technologies.

Our Team includes:

  • Robert Erwin, investment banker with 30 years experience in project finance and sustainable investments;
  • Richard Heien, engineer and manager with over 25 years in development, acquisition, construction, operations and financing of energy assets;
  • Howard Margulis, attorney specializing in energy law and project finance for over 25 years;
  • James O’Hara, engineer and manager with over 25 years in development, acquisition, construction, operations and financing of energy assets;
  • SNR Denton US, LLP, counsel to the Fund, providing fund governance, venture technology, and project finance support.

Investment Pipeline

We have identified over a dozen project opportunities which fit the investment strategy of the Fund. We are continuing to evaluate projects which meet our stringent criteria. We expect to enable the selected projects to migrate from being “venture” projects into candidates for private equity investors and larger funds.

For more information please call:
Robert Erwin: (D) 281 779-4754; (M) 972 679-2658 or
Richard Heien: (D) 281 779-4753; (M) 281 830 3433 

1502 Augusta, Suite 120, Houston, Texas 77057 Ph: 713-784-1288 | Fax: 713-974-2477
Offices in London | Hong Kong