European Clean Energy Investment Guide 2012

ThoughT leadership
plans were devised for each of the company’s product
lines, and target customers, suppliers and manufacturing
partners were identified and kept under constant review.
Key objectives for the company were defined in terms of
reaching specified development milestones leading into
sales contracts and manufacturing. It was recognised
that the level of interest from trade partners and the
value they would ascribe to the company as part of
any collaboration would be heavily influenced by CPT
being able to demonstrate a credible plan to introduce its
products into the market. In parallel, there was a strong
focus on making sure that the company was adequately
funded to achieve this objective through a number of
fundraising rounds.
The initial core group of investors was relatively large –
seven in total including Turquoise Capital – but brought
wide ranging experience to bear. Key shareholders
included experienced early stage investors, sovereign
wealth funds, a specialist in industrial spin-outs, family
offices and the investment arm of an international oil
company. Turquoise acted as CPT’s corporate finance
adviser throughout, responsible for coordinating
fundraising activity (amongst both original investor
group and new investors) and M&A opportunities. With
such a diversified group of shareholders this proved to
be essential, particularly as the business had to confront
the impact of the 2008-9 financial crisis on both capital
raising and the contraction of the automotive market.
Having strong shareholders working together allowed
CPT to continue to raise funds through this period to
maintain its operating runway, which was important
in demonstrating to commercial counterparties that the
company would be a reliable partner. Importantly, a
relatively uncomplicated investment structure allowed
for a helpful degree of flexibility in terms of decision
making and securing capital from new investors.
In late 2011, CPT sold one of its four product-based
business divisions (responsible for its passenger vehicle
electric supercharger) for £30 million to Valeo, a French
Tier 1 supplier to the automotive industry. This was the
culmination of a long period of engagement with the
acquirer and other parties regarding various potential
projects and partnerships. Ultimately, it became clear
that an earlier than planned, outright sale of one
specific product would be the best outcome for CPT, its
customers and Valeo and, by extension, the company’s
shareholders.
12
Disposal
2011
Fundraising
2011
Investment
2011
Turquoise International Limited
Financial Advisor Supporter
Website:
Contact:
Position:
Email:
Telephone:
Turquoise international limited
CPT has recently concluded a further round of fundraising
and continues to work on developing its remaining
business units including the ‘SpeedStart’ stop-start system,
‘TIGERS’ exhaust energy capture system and ‘COBRA’
electric supercharger for larger vehicles.
www.turquoiseassociates.com
Ian Thomas
Managing Director
ian.thomas@turquoiseassociates.com
+44 (0)20 7248 7503
Turquoise International is a merchant bank specialising
in Energy and the Environment. Established in 2002,
Turquoise offers in-depth industry knowledge and
extensive capital raising, transaction advisory, and
investment management expertise and track record.
For capital raising, our advisory clients are
predominantly private companies or listed companies
seeking funding via private placements across a range
of business segments including technology, project
development, manufacturing and services. Turquoise
assists clients in raising funds across the capital
structure including equity and debt. We source funds
for our clients from a diverse range of investors located
in Europe and internationally.
Turquoise advises corporate clients and their
shareholders on transactions such as mergers,
acquisitions, disposals and joint ventures assisting in
areas such as strategy, identification of opportunities,
valuation and transaction execution.
In fund management, Turquoise provides a range of
services to investors, ranging from advice in relation
to individual investments to discretionary investment
management for a portfolio of investments. Turquoise
invests directly through Turquoise Capital (seed stage
proprietary investments), manages the Low Carbon
Innovation Fund (early stage investments in the East
of England) and advises the Anglo Platinum PGM
Development Fund.
Investment
2011
Corporate Finance
Advisory
2010
Investment
Since 2002