First Reserve focuses on energy investments with superior growth prospects and makes investments consistent with the following strategy:
Capitalizing on opportunities created by industry trends. The energy industry is the largest industry segment in the world, with many diverse sectors and considerable acquisition and divestiture activity driven by consolidation, regulatory change, financial stress and asset realizations. The individual sectors of the energy industry do not march in unison. First Reserve seeks the early identification of industry trends that will benefit from an improving outlook in advance of other investors. First Reserve develops broad investment themes based on developing trends and then establishes strategic positions, often in niche markets.
Diversification within the energy industry. First Reserve believes diversification of investments across a wide range of energy industry sectors enhances portfolio returns, stabilizes deal flow, enables consistent distributions and reduces risk.
First Reserve invests in a broad range of segments within the energy industry including: (i) Equipment, Manufacturing and Service Related Companies; (ii) Power Related Companies; (iii) Energy Reserves (such as oil, natural gas, coal producers, as well as uranium, iron ore and other minerals); (iv) Renewables and Alternative Energy; and (v) Energy-related Insurance and Financial products.
First Reserve also intends to invest in a broad range of segments within the energy infrastructure industry including: (i) Renewable and other Power; (ii) Midstream; and (iii) Electric Transmission and Utilities. Investments in these assets and businesses typically involve lower risk and longer hold periods than normally associated with classic private equity investments.
Proactive origination of transactions. With more than 300 years of combined investment experience in the energy industry, First Reserve executives have become industry insiders. They have established an extensive network of company executives, consultants, investment bankers and other energy industry participants who frequently develop investment leads on behalf of the funds and are a resource to First Reserve's portfolio companies.
Disciplined acquisition analysis. First Reserve's due diligence efforts are conducted by the Firm's staff with outside assistance from expert consultants as needed. All important aspects of a potential transaction are examined in detail. Particular attention is focused on the target company's strategy, prospects for growth and potential exit options.
Active management of portfolio holdings to maximize post-investment value. First Reserve has a successful record of creating significant capital appreciation by providing the strategic direction and capital support necessary to build companies and increase operating earnings.
Incentives to attract and motivate entrepreneurial management teams. Although First Reserve has considerable industry and financial expertise, it does not manage portfolio companies on a day-to-day basis. Consequently, proven management teams capable of working with First Reserve to design and execute growth plans are critical to First Reserve's investment success.
Proceed to Portfolio Companies
