Investment Strategy

Investment Strategy

The primary goal of the Investment Team is to drive value throughout the investment cycle. This is done by finding and investing in the industry winners, by maximizing value creation during the holding period through active board representation and finally to facilitate an optimal exit process to maximize return for the investors.

One of the challenges from an investment perspective is not just identifying the winners but also in allocating capital over multiple sectors that will develop over a long time frame. NES believes that keeping alert of new innovations and industry trends and having capital ready for new investments is the key to long term success within this space. NES Partners has followed this strategy since 2002.

Investment Focus

NES Partners is focused on energy related companies and technologies within:

  • Energy efficiency within industry, transport and building sectors
  • Electricity production, transmission and distribution, smart grid
  • Energy storage
  • Renewable energy
  • Oil and gas services

NES Partners prefers to invest in asset light companies and prioritizes businesses that can do more with less money.  The focus is on companies that have low fixed asset strategies supported by proprietary technologies and multiple partnerships which can generate high free cash flows, with a considerable part of the project risk carried by other parties.

Investment stage

The Fund’s investment focus is from early to late stage expansion financing based upon a credible business model and development plan for proprietary products and services. A minimum requirement for NES is that the company should have a prototype developed and a functioning organization. The team only makes equity investments and will not provide other forms of financing such as single project financing, nor do we purchase existing shares. We will however, support demonstration project financing as a natural step in technology verification before commercialization.

Geographic focus

Denmark has for a long time been an international front-runner in the development of many alternative energy solutions, of which the wind industry is the foremost example. From the head office in Copenhagen NES Partners is ideally located to identify investment opportunities in Denmark, Scandinavia and Northern Europe. NES Partners is the first growth equity company in Denmark and Scandinavia fully dedicated to the alternative energy technology sector and among the first in Europe.

NES Partners has its starting point in a region with a strong track record of creating attractive technology companies; a track record that is over-proportional to the population size as it is driven by high levels of education and early adoption of new technologies.

Our geographical scope is primarily Northern Europe with a preference for Denmark and the rest of Scandinavia as well as the United Kingdom. Secondarily, we look for deals in North America where we seek to partner with local co-investors who will take on the role as lead investors.