Most corporates look for traditional banking channels when they require funding for their ongoing or new projects. But when it comes to companies involved in renewable energies, the traditional banking channels might not always be the best choice to look for funding for renewable energy project. The reason for this is that corporates involved in renewable energy might not always have strong financials at the initial stages. This makes it a tad difficult for banks to approve oil and gas finance to the extent needed.
As a result, many companies looking for renewable energy funding sources turn to alternative options. There are several high net worth individuals who are looking for good avenues for parking their investible surplus. There are also many families who are keen to utilize their family’s wealth for productive purposes. These families have their own family offices through which they set up avenues for investment.
But what is needed is to bring such potential investor’s face to face with corporates who require funding. The funding for energy exploration or renewable energy sources needs to be of huge amounts and sustained for extended periods. Renewable energy is not something that would bring returns very quickly. After an extended period, they would surely turn in heavy profits but for the first few years, they would guzzle a lot of funds without too much of visible returns. Also, not all the initiatives might turn out to be successful. There might be some explorations which turn into damp squibs after a lot of effort and money has been put on them.This is the reason that energy exploration and renewable energy are areas which see a lot of M&A activity.
In order to tie up all of these disparate requirements for energy exploration, renewable energy fundraising, and even infrastructure Fundraising, a very dependable name is Kapok Capital. They have a long experience in arranging for private fundraising. The fundraising could be in the form of equity fundraising, which would entail part or full ownership. On the other hand, they could also arrange for debt fundraising, which is in the form of a line of credit for which interest would be charged. Apart from fundraising, Kapok also has expertise in providing advisory for mergers and acquisitions related to energy, oil, or renewable energy. Kapok has a lot of expertise in providing risk advisory services. For all these activities, Kapok is a very trusted name with more than a decade of experience.