The investment approach
The most balanced risk-adjusted returns can be achieved by employing sector specialists with a disciplined investment approach.
DIRECT’s investment approach is underpinned by the following key principles:
Deep sector expertise to create a competitive edge, in understanding risk and return potential.
Acquiring assets for value, given development or operational (late-life verse new asset) stage and risk profile.
Diversification across different technologies, geography and project stage.
Development of a strong core portfolio, that can provide investment opportunities into energy transition adjacencies, including other Core and Core+, energy transition and climate change infrastructure.
Actively manage assets, internalise expertise where appropriate to reduce costs and enhance returns.
Manage risk through appropriate levels of contracted revenues, supply agreements and outsourcing to mitigate risks where appropriate.
Active management
DIRECT believes in an active, consistent and disciplined approach to the ongoing management of renewable energy assets in order to optimise operational and financial performance. This is achieved by managing assets both individually and overall at a portfolio level looking at technical issues and solutions, revenue enhancement opportunities and contract cost reductions whilst always being acutely aware of the underlying operational and reputational risk constraints.