OUR INVESTMENT UNIVERSE

Ecofin specialises in the global utility, infrastructure, alternative energy and environmental sectors, investing across three continents, Europe, North America and Asia.

The global utility sector consists of companies engaged in the electrical power, water, gas distribution and energy transmission businesses. The global infrastructure sector is made up of those companies which enjoy natural monopolies in the provision of essential services such as the operation of toll roads, ports or telecommunications facilities. The alternative energy sector encompasses developers of alternative energy, equipment manufacturers and companies which provide products, enabling technologies or services which are transforming the way we use energy. The environmental sector includes waste management, environmental remediation and similar businesses which ameliorate or prevent damage to the natural environment.

Together, these industries provide products and services which are essential to developed societies and which provide the foundation for broadly-based and sustainable economic growth.

The global utility sector is Ecofin’s principal area of activity. There are approximately 1,200 investor-owned electric power, water and gas distribution companies listed on world stock exchanges. Over 600 of these companies are listed on stock exchanges in developed countries and at 30 June, 2009 they had a market capitalisation in excess of US$1,380 billion. Depending on the market, these listed utilities typically account for in aggregate between 4% and 9% of the total market capitalisations of the principal markets on which their shares trade.

In addition, there are more than 550 utility companies which are listed on stock exchanges in the emerging economies of Asia, Eastern Europe and Latin America. At 30 June, 2009, these companies had an aggregate market capitalisation in excess of US$530 billion.

Ecofin is also active in the global infrastructure, alternative energy and environmental sectors. Many infrastructure businesses share a number of the characteristics of utilities: They are businesses which provide essential services, are capital intensive, enjoy natural monopolies and are often regulated.  Ecofin’s interest in the environmental sector originated with the firm’s founding as a sector specialist in 1992. Today, the firm’s principal activities in the environmental sector centre on alternative and alternative energy, promising environmental technologies and waste treatment.