Full Circle Renewables, LLC
Since 2007, Luxembourg-based Firminy Capital Sarl has maintained specialized sub-funds in areas like Arabian Gulf investments and alternative energy, among others. To achieve its investment goals, Firminy Capital Sarl’s alternative energy sub-fund was structured with the help of a number of experts, including Full Circle Renewables, LLC (FCR).
An independent power producer registered with the Federal Energy Regulatory Committee, FCR uses market-based renewable commodities strategies to create liquidity for renewable energy supplies. With a portfolio of reliable products, FCR ensures its projects are delivered on budget and on time by maintaining a network of vendors, ranging from power plant equipment manufacturers to design engineers, whose work is the best in the industry.
Committed to providing affordable, available renewable energy, FCR succeeds through the principles of diversity, dispatch-ability, and contract relationships. Product and investment diversity, along with multiple vendors and buyers to support its projects, are key to limiting FCR’s regulatory and institutional risk.
“Flexible dispatch-ability” refers to FCR’s ability to optimize the transmission of its energy resources to the grid and its customers, which helps the company to create revenue and avoid congestion issues. Contracted with some of the most recognizable clean energy brands and energy marketing companies in the world, FCR also can develop projects in difficult markets, thanks to its market-based transactional purchase facility, which can operate outside of utility pricing structures.
A Luxembourg-based financial entity tasked with the management of the Firminy Equity Fund, Firminy Capital Sarl also has managed a number of Luxembourg Securitization Funds throughout its history. Funds such as Firminy Capital Sarl deal with the special asset class of securitizations, defined as pools of smaller financial assets brought together to create a new security.
Securitization of assets confers a number of advantages to market participants and the economy as a whole. For financial institutions and banks, securitization represents an ideal way to remove outstanding assets from balance sheets and free up capital for additional loans. Thanks to an increased level of available capital, lenders can also provide lower interest rates, which encourages borrowing and results in overall economic growth.
In the same vein, securitization brings together non-tradeable assets and makes them tradeable as a collective, increasing liquidity and introducing new dynamic assets. In terms of risk management, securitization creates a tiered system of assets based on their inherent risk levels, which investors can evaluate and acquire based on the risk expectations of their portfolios.
Luxembourg-based fund management group Firminy Capital Sarl oversees a number of securitization funds, one of which is the Firminy Equity Fund. To optimize return on investment, Firminy Capital Sarl manages a broad range of assets, including development loans,aviation fleets, real estate,cash and debentures.
Debentures are limited in their scope as an equity investment because they are similar to a regular loan, but with some notable exceptions. The instruments, which are backed by the status of the lender, are not secured by any sort of collateral.
Issuers of debentures are usually governmental entities or corporations. Therefore, these kinds of loan agreements are issued as a type of bond and are recorded in a binding contract known as an indenture. The indenture establishes the terms of the loan and indicate the instrument’s date of maturity, method of calculating interest, and payment timing. Examples of government-based debentures include treasury bills and T-bonds. Both of these debentures regularly are acknowledged as being risk-free because governmental bodies can increase taxes or print currency to meet the obligation if necessary.