Kapok Capital is one of the few companies that has got an excellent track record in a variety of financial aspects related to oil and gas, renewable energy, and infrastructure. This is because of their ability to arrange finances for both infrastructure debt fund as well as equity investments. They have a great network of family offices and high net worth individuals whom they mobilize then funds are needed. For more than a decade they have played a leading role in organizing financing efforts for oil and gas or infrastructure projects.
If one were to evaluate the performance over the years, one would notice a few patterns which have made it possible for them to become so adept at energy project finance. There are several common characteristics of their work which have made them so successful. Let us look at some of them in a little more detail.
Many M&A activities in the oil and gas space take place between companies based out of different countries. This often brings in specific advantages in terms of quality of raw materials obtained, ease of logistics, and also tax benefits. A good consultant should be able to make sure that all such benefits are actually received by the new entity.
Companies which are looking for fundraising need a good mix of debt and equity. This is because the structure and composition of the company dictate whether it is more useful to get a simple debt or whether the company is looking to offer ownership. A good fundraising company would be able to provide both these types of oil and gas finance.
Sometimes companies who are looking to carry out a merger or an acquisition might not need funds. They might be more in need of good advice regarding the proposed M&A activity. This is necessary to ascertain how good the proposed new entity would be in terms of meeting the goals. For example, some companies might have better strengths in exploration, while others might be good at distribution. The merger or acquisition should add on value to both the entities involved, and whether or not it would, can be assessed by a good consultant.Finally, when we talk about infrastructure equity funds, it is not always that conventional sources of finance are tapped. The fundraising company should be able to utilize non-conventional sources of energy as well, like private equity funds, family offices and such like.