Exergy Capital, an advanced energy investment firm, and Dalma Capital Management, a prominent alternative investment fund accelerator in the Dubai International Financial Centre, have established the world’s first Sharia-compliant investment strategy to develop the infrastructure and technology required to reshape the energy value chain.
The investment strategy seeks to generate attractive risk-adjusted returns by investing in real assets, infrastructure and companies which have developed innovative technologies, products and services throughout the energy value chain, predominantly in Europe. It pursues a private equity style investment strategy generating capital gains for investors and focusing on uncrowded niches in the energy and interconnected sectors.
The current global energy transition is driving an “inevitable geopolitical shift” and creating “unique opportunities not seen in generations,” according to Dr. Erich Becker, Founder and Managing Partner of London-based Exergy. Exergy is backed by Winton Group, a global investment management and data science company.
Dr. Becker observes: “The global energy transition is underway and affecting the entire energy value chain from energy firms, their providers, suppliers and financiers, to end-users. The drivers include the need to decarbonise, as well as mounting pressures on and an increasing appetite for electrification and digitisation.
“The next few years of the transition are critical. Investors will need to understand the unique opportunities as they are unlikely to come around again.”
Zachary Cefaratti, CEO at Dalma Capital, explains: “Investing in energy of the future provides a hedge to fossil fuel economies, benefiting investors in the Middle East and beyond who are either directly or indirectly exposed to the conventional energy value chain.
He continues: “The ESG Investment thesis [environmental, social and governance] is well aligned with Sharia principles – together with Dalma Capital’s Islamic Window this will provide the first Sharia and ESG Compliant Energy Transition Private Equity structure globally.”