PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP - ("PORTLAND GEEREF LP") JUNE 2020
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Portland GEEREF LP
addresses all these solutions
PORTLAND GLOBAL ENERGY EFFICIENCY AND
RENEWABLE ENERGY FUND LP
(“PORTLAND GEEREF LP”)
JUNE 2020
ADVISORY Forward-Looking Statements In the interest of providing investors and potential investors with information regarding the Portland GEEREF LP, including the managers’ assessment of the Portland GEEREF LP future operations, certain statements made by the presenter and contained in these presentation materials (collectively this presentation) are ‘forward-looking statements’ within the meaning of applicable Canadian securities legislation. The forward-looking statements contained in this presentation speak only as of the date of this presentation and are expressly qualified by this cautionary statement. The information contained in this presentation does not purport to be all-inclusive or to contain all information that potential investors may require. PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 2
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP
¡ “I’m a better investor because
I’m a businessman, and a better
businessman because I’m an
investor.” –Warren Buffett
§ Unique Opportunity to Invest
Alongside the EU, Germany and
Norway
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 3
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP The Portland Global Energy Efficiency Renewable Energy Fund LP allows investors to co-invest through the partnership alongside the sovereign states of Germany and Norway, international institutional investors including the European Investment Fund (representing the European Union) advised by the European Investment Bank, the lending arm of the European Union, and the world’s largest multilateral lender and the leading provider of climate finance. PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 4
THE ENERGY ACCESS GAP THE FRAMEWORK
The UN-Led Sustainable Energy for All initiative
seeks to achieve universal energy access by 2030 as
one of its three goals, the others being doubling the rate of
THE PROBLEM improvement in energy efficiency and doubling the share of
Over 1.2 billion people around the world renewables in the global energy mix.
have no access to electricity
and the many development benefits it brings
including improving health, generating
income, enabling education, improving
security, and empowering women. Universal Renewable Energy
Energy Access Energy Efficiency
THE NEED
The International Energy Agency estimates that 60% of new
electricity needs will have to be met by distributed (mini- &
off-grid) solutions.
THE SOLUTIONS
A range of options exist and are ready for scale for off-grid
rural electrification, including:
Solar Photovoltaic (PV) Systems Mini Grids
Portland GEEREF LP
BioMass Small Hydro Small Wind
addresses all these solutions
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 5
INVESTMENT STRATEGY OF PORTLAND GEEREF LP
¡ Portland GEEREF LP will invest primarily in GEEREF.
¡ GEEREF is a fund of funds investing in regional funds and emerging markets:
¡ Private equity and infrastructure
¡ Renewable energy:
¡ Wind, solar, hydropower, biomass, geothermal
¡ Energy efficiency:
¡ Buildings, lighting, consumer
¡ GEEREF’s historical team has a track record of 19% net IRR in Euro on realized funds from January 2000 to March
2013 includes €155 million invested across 12 emerging market funds.1
¡ The Manager may invest in income producing private and public debt and equity securities, either directly or
indirectly through other funds.
¡ The Manager may use currency hedging.
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 6
Portland
GEEREF
LP
€24m €14m €19.61m €66.24m
€14.25m €10m
Co-Invest
Co-Invest
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 7
GEEREF’S INVESTMENT STRATEGY
¡ Target fund size: €5m to €100m
¡ GEEREF commitment: €2m to €20m Investment Focus by Geography Sector Breakdown of Regional Fund
Commitments
¡ Project equity: up to €10m Resource
MENA Energy Efficiency
¡ Target project returns: 15% to 25% Sub-
Saharan
Efficiency
Africa Solar
India
¡ Target regional fund returns: 20% gross Biomass
Latin
¡ As at March 2020: America
Wind
Non-EU SE Asia
Hydro
¡ €194m committed to 14 regional funds Eastern
Europe
¡ Regional funds have a total of 168 investments
¡ Co-investment / direct investment projects are expected
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 8
GEEREF REGIONAL FUNDS2
% of # of Investment Divest
Launch Project Name
Portfolio Projects Period Period
1) Evolution One Fund
2009 –
1 16% 3 2) Renewable Energy Asia Fund Complete 2019+
2011
3) DI Frontier Market Energy and Carbon Fund
1) Armstrong S.E. Asia Clean Energy Fund
2012 – 2) MGM Sustainable Energy Fund 2019 –
2 26% 4 2019+
2014 3) Emerging Energy Latin America Fund II 2020
4) Africa Renewable Energy Fund
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 9
GEEREF REGIONAL FUNDS CONTINUED2
% of # of Investment Divest
Launch Project Name
Portfolio Projects Period Period
1) Caucasus Clean Energy Fund
2) Renewable Energy Asia Fund II
2015 – 2019 – 2019 –
3 29% 4 3) Catalyst MENA Clean Energy Fund
2016 2021 2025
4) SolarArise India Project Pvt. Ltd.
1) Evolution II Fund
2) MGM Sustainable Energy Fund II
2017 – 2022 – 2023 –
4 29% 4 3) Frontier Energy II
2019 2024 2028
4) Africa Renewable Power Fund
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 10GEEREF REGIONAL FUNDS PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 11
PRIORITY OF RETURNS: B UNITS ARE “LAST IN, FIRST OUT”
GEEREF has a unique structure with a “waterfall distribution”
GEEREF prioritizes returns to B units (held by Portland GEEREF LP) over A shares (held by soverign states). The waterfall distribution provides
a preferred return to B unit holders with approximately 50% downside protection as any portfolio losses are first absorbed to the full extent of
A shares. B units are therefore providing enhanced risk-adjusted returns. Distributions to investors are according to the sequence below.
1. B Unitholders are repaid their commitments
2. B Unitholders receive a preferred distribution of 4% per annum on commitments
3. A shareholders are repaid their commitments
4. B Unitholders receive a second preferrred distribution taking their return to 10% per annum on commitments
5. 95% of remaining distributions are allocated pro rata between A shares and B units
5. 5% of remaining distributions are allocated as carried interest to EIF as Fund Advisor (C Units)
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 12ILLUSTRATION OF STRUCTURE – ASSUMES GEEREF’S PORTFOLIO RETURN
OF 6%3
Entity Description Net Assets ($000,000’s)
Year 0 Year 1 Year 2 Year 3 Year 7
GEEREF grows at a 6% compounded
GEEREF 200.00 212.00 224.72 238.20 300.73
annual return
B unit holders grow at a 10% simple
B unit holders annual return and receive 47.5% of any 100.00 110.95 122.24 133.90 184.59
remaining residual returns
A unit holders receive 47.5% of any
A unit holders 100.00 100.95 102.24 103.90 114.59
remaining residual returns
C unit holders receive 5% of any
C unit holders - 0.10 0.24 0.41 1.54
remaining residual returns
¡ GEEREF delivers a 6% annualized return
¡ B unit holders receive a 9.2% annualized return
¡ A unit holders receive a 2.0% annualized return
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 13ILLUSTRATION OF STRUCTURE – ASSUMES GEEREF’S PORTFOLIO RETURN
OF 8%3
Entity Description Net Assets ($000,000’s)
Year 0 Year 1 Year 2 Year 3 Year 7
GEEREF grows at a 8% compounded
GEEREF 200.00 216.00 233.28 251.94 342.76
annual return
B unit holders grow at a 10% simple
B unit holders annual return and receive 47.5% of any 100.00 112.85 126.31 140.42 204.56
remaining residual returns
A unit holders receive 47.5% of any
A unit holders 100.00 102.85 106.31 110.42 134.56
remaining residual returns
C unit holders receive 5% of any
C unit holders - 0.30 0.66 1.10 3.64
remaining residual returns
¡ GEEREF delivers a 8% annualized return
¡ B unit holders receive a 10.8% annualized return
¡ A unit holders receive a 4.3% annualized return
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 14ILLUSTRATION OF STRUCTURE – ASSUMES GEEREF’S PORTFOLIO RETURN
OF 10%3
Entity Description Net Assets ($000,000’s)
Year 0 Year 1 Year 2 Year 3 Year 7
GEEREF grows at a 10% compounded
GEEREF 200.00 220.00 242.00 266.20 389.74
annual return
B unit holders grow at a 10% simple
B unit holders annual return and receive 47.5% of any 100.00 114.75 130.45 147.20 226.88
remaining residual returns
A unit holders receive 47.5% of any
A unit holders 100.00 104.75 110.45 117.20 156.88
remaining residual returns
C unit holders receive 5% of any
C unit holders - 0.50 1.10 1.81 5.99
remaining residual returns
¡ GEEREF delivers a 10% annualized return
¡ B unit holders receive a 12.4% annualized return
¡ A unit holders receive a 6.6% annualized return
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 15PORTLAND GEEREF LP TERMS
¡ Available for purchase by accredited investors (including managed accounts) and non-individual investors who
invest a minimum of $150,000
¡ Approximately anticipated 2.75 year term as at June 2020 with possible extensions of up to 5 years
¡ Minimum subscription amount of $2,500
¡ Effective September 30, 2018, the Partnership will pay quarterly distributions: $0.60 distribution payable to Series
A limited partners and $0.675 distribution payable to Series F limited partners
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 16TRANSFER AND REDEMPTION OF UNITS
¡ Extraordinarily, redemptions can be considered at net asset value per unit (“NAVPU”) every calendar quarter.
¡ Extraordinarily, transfers may be considered at a +/- 10% of NAVPU every calendar quarter.
¡ Extraordinarily, transfers may be accepted in situations where clients are in a position of financial hardship and
would like to transfer their units prior to the end of the expected term of the Partnership.
¡ Potential “buyers” of units being transferred may be able to post bids for units +/- 10% of the NAVPU on a
quarterly basis.
¡ The parties to the transfer may be required to make the arrangements for any payments that may be associated
with such transfers directly.
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 17FEES
Portland GEEREF LP*
¡ Series A management fee of 1.35% until end of 2020, 1.75% thereafter, which includes Series A trailer fee of 0.6%
p.a. until end of 2020, 1.0% thereafter
¡ Series A Agent’s commission: 3% paid by Portland GEEREF LP
¡ Series F management fee of 0.75%
¡ Promoter fee: 2% paid by Portland GEEREF LP
GEEREF
¡ GEEREF advisory fee to the EIF as a Fund Advisor of 0.95% p.a. of total commitments
* Please see the Offering Memorandum for additional fees and expenses
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 18SUMMARY OF INVESTMENT IN GEEREF
¡ Anticipated above average long-term returns
¡ Preferred return mechanism of B units:
¡ Enhanced returns
¡ Faster return of capital than A shareholders
¡ Access to specialized infrastructure funds/geographies exposed to high growth
¡ Diversification across 14 regional funds
¡ Institutional quality oversight and governance
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 19COMPLIMENTARY INVESTMENT AS PORTLAND GEEREF LP GROWS IN SIZE ¡ Newlook Capital Industrial Services LP (“Newlook LP”) ¡ As at June 30, 2020, this position is approx. 9.9% of Portland GEEREF LP ¡ Provides an 8% cumulative, non-compounding preferred return to limited partners PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 20
NEWLOOK LP - INVESTMENT OBJECTIVES
¡ To develop a strong and synergistic portfolio of ownership investments in industrial services companies
(“Portfolio Companies”) that have:
i. technical service revenue of a recurring nature that assures code compliance
ii. strong and reliable historic net revenues, and operating cash flow positive
iii. experienced and committed management and senior technical talent
iv. growing addressable markets, and
v. customer lists that can be cross-marketed to other Portfolio Companies
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 21NEWLOOK LP - UNDERLYING INVESTMENTS ¡ Direct Elevator Service Limited (Direct Elevator) ¡ True Canadian Elevator Maintenance Company Ltd. (True Canadian) ¡ MultiGas Detection & Instrumentation Service Ltd. (MultiGas) ¡ Fire Shield Technologies Ltd. (Fire Shield) ¡ Valley Technologies Ltd. (Valley Technologies) ¡ Nutech Fire Prevention Inc. (Nutech) ¡ ACME Fire and Safety Co. Ltd. (ACME) ¡ Centurion 2000 Fire Protection (Centurion) PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 22
NEWLOOK LP – ASSET MIX BY SECTOR* *Based on current equity deployed as at December 31 of the applicable year PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 23
NEWLOOK LP - ELEVATORS
¡ Synergistic combination of businesses.
¡ Direct Elevator is a leading provider of elevator maintenance and modernization services, with 95 highly trained
employees and operations that offer service throughout the entire Greater Toronto Area from offices in
Scarborough and Etobicoke.
¡ The acquisition of Direct Elevator provides a platform for the Newlook LP to expand its industrial services
portfolio.
¡ Current management of Direct Elevator will stay in place and will have a vested interest in the business going
forward.
¡ Direct Elevator is a highly strategic acquisition for the Newlook LP with an ability to generate ongoing and
increasing earnings before interest, taxes, depreciation and amortization (EBITDA) from a wide range of
customers.
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 24NEWLOOK LP - GAS DETECTION
¡ MultiGas is a leading gas detection and variable frequency drive service provider in Canada with service capability
and offices in Edmonton and Calgary, and service capability in Regina, Saskatoon, and interior British Columbia.
¡ MultiGas is headquartered in Leduc, Alberta that employs 23 highly trained skilled employees.
¡ Current MultiGas management will stay in place and will have a vested interest in the business going forward.
¡ MultiGas is a highly strategic acquisition for Newlook LP that has an ability to generate ongoing and increasing
EBITDA from a wide range of customers.
¡ MultiGas provides technical service revenue of a recurring nature, where the service provided gives code
compliance assurance.
¡ MultiGas has acquired all of the assets and business operations of Fire Shield
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 25NEWLOOK LP - GAS DETECTION CONTINUED ¡ The Newlook LP has acquired all of the assets and business operations of Valley Technologies ¡ Valley Technologies provides gas detection system sales, service and calibrations ¡ Valley Technologies has been providing quality Gas & Fire Detection sales and services in Manitoba since 2002 ¡ Headquartered in Winnipeg, Valley Technologies factory trained technicians provide service across the province PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 26
NEWLOOK LP - FIRE DETECTION
¡ Fire Shield is a fire alarm systems and sales provider with several skilled technicians.
¡ Their main office is located near Regina and they provide service to the entire province of Saskatchewan.
¡ They also provide sprinkler system and fire suppression services.
¡ Fire Shield is a member of the Canadian Fire Alarm Association and their technicians are all certified, which,
starting in 2018, will be mandatory for all technicians in the fire alarm industry.
¡ Fire Shield primarily services apartments and condos, providing MultiGas a seamless cross-selling opportunity for
their gas detection equipment sales and services in Saskatchewan.
¡ The Fire Shield technicians will also be cross-trained to handle all makes and models of gas equipment so that
MultiGas can provide more robust local service.
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 27NEWLOOK LP - FIRE DETECTION CONTINUED
¡ Nutech was established in 1996 and is a leading total solutions provider for planning, designing and implementing
turnkey fire protection systems throughout Hamilton, Niagara and the GTA.
¡ Nutech is well-known throughout the industry for its unique ability to “do it all” – including taking on generator
and electrical projects for residential, commercial, industrial and institutional clients.
¡ Nutech provides clients with annual fire inspection, repairs, modifications, emergency service and various training
programs; while ensuring clients are always safe, code compliant and well-prepared.
¡ Nutech employs over 30 technicians in Ontario and all of them are manufacturer trained, licensed electricians,
Canadian Fire Alarm Association certified and experienced sprinkler fitters.
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 28NEWLOOK LP - FIRE DETECTION CONTINUED
¡ ACME’s services range from sales, service and installation of pre-engineered and engineered fire suppression
systems, fire extinguishers, fire alarms, shared services ULC fire alarm monitoring, emergency lighting, sprinkler
and back flow services, and fire safety plans.
¡ ACME has its own hydrostatic testing and recharging facilities.
¡ By providing all these services in house, ACME ensures quality and control.
¡ ACME has strategic alliances with professional engineers to assist or design specific projects when needed.
¡ ACME, located in Burnaby, BC, has acquired Centurion, located in Kelowna, BC.
¡ Centurion has been in operation for 21 years and provides both commercial and industrial fire alarm and fire
suppression services.
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 29POTENTIAL RISKS While the Manager and GEEREF’s Front Office investment team (GFO), through the advisory services of the EIF and the EIB, exercise due diligence throughout the investing process of the Partnership, no guarantees can be given regarding returns on your investment or the risk of loss. The Manager believes the following risks are key to Portland GEEREF LP’s performance: no assurance of return, dependence on the Manager, dependence on GFO, illiquidity of Portland GEEREF LP’s investments (including those in Regional Funds), equity risk, currency risk, legal jurisdiction, risks related to the Regional Funds and other investments in specific sectors, risk of not meeting capital calls and valuation of Portland GEEREF LP’s investments. Investors should consult with their financial advisor about the risks prior to investing in Portland GEEREF LP. Please read the “Risk Factors” section in the Offering Memorandum for a more detailed description of all the relevant risks. PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 30
1. The internal rate of return is the discount rate that makes the net present value of a series of cash flows equal to zero. GEEREF 2014 Information
Memorandum, June 2014
2. The Manager has based this on expectations/forecasts of the investment cycle of GEEREF.
3. To be able to highlight time-weighted rates of returns, the Manager has been required to assume that full deployment of all capital into underlying GEEREF
funds is achieved by November 2016 and the average rate of return on the underlying assets is the respective return stated compounded annually over 7
years. While these assumptions fit within the current known circumstances of GEEREF, no guarantees or assurances can be given to the accuracy of these
return assumptions. Other sources available per the Offering Memorandum, www.geeref.com and GEEREF Quarterly Investors Reports
This presentation is confidential and for the use of investors, potential investors and investment dealers only. The contents are not to be communicated,
reproduced or distributed to the public or the press.
Use of any third party quotations does not in any way suggest that person endorses Portland Investment Counsel Inc. and/or this product.
The Portland Global Energy Efficiency and Renewable Energy Fund LP (the “Partnership”) is not publicly offered. It is only available under prospectus
exemptions and other exemptions available to investors who meet certain eligibility or minimum purchase requirements. Currently these exemptions include
the accredited investor exemption and the $150,000 minimum purchase exemption for non-individuals. Information herein pertaining to the Partnership is
solely for the purpose of providing information and is not to be construed as a public offering in any jurisdiction of Canada. The offering of Units of the
Partnership is made pursuant to an Offering Memorandum and the information contained herein is a summary only and is qualified by the more detailed
information in the Offering Memorandum.
Portland Investment Counsel Inc. has not independently verified all the information and opinions given in this material. Accordingly, no representation or
warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this material.
Information presented in this material should be considered for background information only and should not be construed as investment or financial advice.
Please consult a Financial Advisor. Every effort has been made to ensure the utmost accuracy of the information provided. Information provided is believed to
be reliable when published. All information is subject to modification from time to time without notice. Consent is required for any reproduction, in whole or
in part, of this piece and/or of its images and concepts. PORTLAND, PORTLAND INVESTMENT COUNSEL and its logo are registered trademarks of Portland
Holdings Inc. Used under license by Portland Investment Counsel Inc.
Portland Investment Counsel Inc., 1375 Kerns Road, Suite 100, Burlington, Ontario L7P 4V7 Tel.:1-888-710-4242 • Fax: 1-866-722-4242 • www.portlandic.com • info@portlandic.com
PIC8229-E (08/20)
PORTLAND GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND LP 31You can also read
