Clean Technology Remains Hot, Need for Talent Escalates
Institutional research brokerage Gabelli & Co. is jumping on the “green” bandwagon. Gabelli has assembled a team to focus on the clean technology and alternative energy sector, reports the WSJ. Mario Gabelli also says he’s opening a hedge fund to invest in “green” companies that benefit the environment. “We think there’s money in alternative energy,” he told Bloomberg. The WSJ also quotes John Segrich, a Gabelli Research Analyst as saying, “We’re of the view that there’s a convergence happening between technology and energy.” Segrich adds, “We’re now taking a coherent approach to develop a product around it. It’s a big enough theme that warrants the focus of multiple minds and disciplines.”
Climate change is expected to ensure alternative energy remains a hot area for investment. In fact, FINalternatives reports that a growing number of firms, including Och-Ziff Capital Management, GLG Partners, GAM, ABN Amro, Ermitage Group, PCM Capital and Akeida Capital Management, are launching funds to exploit opportunities in the alternative energy space. Executive search firm, A.E. Feldman, says right now across the country, the wealth of individuals and institutional investors getting involved in the energy and clean technology sector is enormously high. The trend is creating financial jobs and opportunities for investment professionals with expertise in this space. The firm also reports a growing number of law firms with close ties to the VC community and strong IP practices have jumped onto the green energy bandwagon. The firm adds that legal jobs are opening up as firms build practice groups that target the clean tech sector.
Cleantech to Remain a Hot Sector
Regardless of the short term fluctuations in oil prices, clean technology will remain a hot sector, according to the WSJ. That’s because concerns over U.S. dependence on foreign oil are mounting. Seeking to capitalize on the trend, a growing number of firms are launching funds to tap this burgeoning sector. “Mutual funds and hedge funds dedicated to investing in renewable energy and clean technology are being launched with increasing frequency,” the WSJ quotes Morningstar Researcher, David Kathman, as saying.
Gabelli’s Segrich says the firm’s clean technology team will look at existing companies, usually in the industrial sector, that are seeing an impact on their business as they become part of the supply chain for the emerging alternative-energy industry, reports the WSJ. One example of a company that fits this profile is Woodward Governor Co., which is making inverters for wind turbines, notes Segrich. The WSJ adds the Gabelli group will also analyze companies that are directly related to the green theme, including solar and wind power, energy storage and smart grid.
Cleantech Investment Soars
Despite a global economic downturn, cleantech venture investments in the second quarter surged to a record $2 billion according to figures recently released by Clean Tech. The total is a 58% increase over the same period a year ago, and 48% jump over the first quarter. The report states that investments in North America, Europe, China and India outstripped the previous record of $1.8 billion set in the third quarter of last year. Topping the list were investments in solar technologies and second-generation biofuels, including concentrated solar thermal and algae companies.
“Interest in cleantech continues to show robust growth, despite the impact of economic headwinds and continued credit market constraints,” said John Balbach, Managing Partner, Cleantech Group, LLC.
Cleantech insiders who convened at the Clean Tech Forum in Washington D.C. had a positive outlook for the sector – despite the recent bankruptcy of Lehman Brothers and sale of Merrill Lynch to Bank of America. Cleantech quotes Todd Glass, Chair of the Energy Practice Group at law firm Heller Ehrman, ” as saying, “Short term financial market uncertainty doesn’t necessarily mean long term woe in cleantech…I don’t think anybody is debating that alternative energy has a positive future. We think that the capital will continue to flow. We’re still seeing it. If you look at the cleantech statistics from the venture community, investment is very solid. The companies that have the technologies, the team and the market potential are still going to get the money they need.”
Right now, A.E. Feldman is one step ahead of the latest developments in renewable energy and green technology. To learn more about these issues or inquire about existing and future job opportunities in this sector, the lines of communication are open. Contact the Mitch Feldman, President of A.E. Feldman, and the firm’s cutting edge energy or legal recruiting teams here.
