BALTIMORE , MARYLAND , May 15, 2008 -- Richard Gilmore, President and CEO of GIC Group, explains the dynamics of successful investing in the ethanol for fuel industry to an audience of energy experts and investors at the BioFuels Development Summit on Thursday. Gilmore says, “As the industry moves to its second cycle, new financing strategies open up.” His presentation outlines a range of investment strategies that reflect changes in the market.
“The way to avoid the pitfalls,” Gilmore comments, “is to be adaptive to deal requirements but also to market conditions and local regulatory requirements.” The main options that Dr. Gilmore addresses are: 1) partnering between two strategic investors, each with a presence in the industry; 2) state-owned enterprises in joint ventures with strategic corporate partners; 3) private equity and IPO; and 4) public-private partnerships.
The main shareholder vehicles enumerated by Gilmore are: 1) private equity funds; 2) hybrid funds including hedge and private equity participation; 3) fund of funds; 4) strategic investors; and 5) “mutants,” including private/public partnerships, upstream and downstream marketing and equity swaps.
Gilmore concludes his remarks by warning, “Watch the pitfalls. Biofuels are here to stay but the industry has its detractors and supporters. The spill-over to public policy can chip away at the profits if you’re not careful.”
The International 2 nd Generation Biofuels Development Summit is being held in Baltimore, Maryland at the Sheraton Inner Harbor Hotel from May 13-16, 2008 under the sponsorship of the Cambridge Healthtech Institute (http://www.biofuels-summit.com).
About GIC Group. GIC Group is an investment advisory and market research consulting firm established in Alexandria, Virginia since 1982. For further information about GIC Group, see http://www.gicgroup.com.
Contact:
Susan Scurlock Theiler, GIC Group
1434 Duke Street , Alexandria, VA 22314
703-684-1366, susant heiler@gicgroup.com
http://www.gicgroup.com
|
