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    The Green Investment Bank acquisition was a large and complex deal involving a publicly owned entity. Macquarie is considering co-investing in GIB assets and approaching potential partners. A pension fund would be the best partner scenario, as Macquarie could later purchase the pension fund's equity stakes when investors seek to divest. For assets at different development stages in the GIB portfolio, hiring specialists to further develop the assets would increase their value and generate healthier returns to inform Macquarie's pricing decision.

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    Green Investment Group (GIG) Work Sample

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    The Green Investment Bank acquisition was a large and complex deal involving a publicly owned entity. Macquarie is considering co-investing in GIB assets and approaching potential partners. A pension fund would be the best partner scenario, as Macquarie could later purchase the pension fund's equity stakes when investors seek to divest. For assets at different development stages in the GIB portfolio, hiring specialists to further develop the assets would increase their value and generate healthier returns to inform Macquarie's pricing decision.

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    50 views7 pages

    Grisham Tiwari-Investment Banking & Asset Management

    Uploaded by

    The Grisham Tiwari
    The Green Investment Bank acquisition was a large and complex deal involving a publicly owned entity. Macquarie is considering co-investing in GIB assets and approaching potential partners. A pension fund would be the best partner scenario, as Macquarie could later purchase the pension fund's equity stakes when investors seek to divest. For assets at different development stages in the GIB portfolio, hiring specialists to further develop the assets would increase their value and generate healthier returns to inform Macquarie's pricing decision.

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    SAMPLE WORK

    GREEN INVESTMENT BANK ACQUISITION

    ——Grisham Tiwari
    [email protected]
    The Green Investment Bank
    An Overview
    The Green Investment Bank (“GIB”) was created by the UK Government in
    October 2012 to invest capital in the UK green infrastructure sector
    1. Target sectors: Energy Efficiency (“EE”), Waste and Bioenergy (“W&B”),
    Offshore Wind (“OSW”), and Onshore Renewables (“OR”)
    2. Flexible capital: Ability to invest in equity and debt
    3. Build a team of the industry’s leading talents including 80 investment
    specialists in a wider team of c. 130 personnel
    4. Raised and managed the largest renewable energy fund in the UK: the
    GIB OSW fund (£1.1bn AUM
    Scenario :2
    All for one & one for all
    The Green Investment Bank acquisition was a large and complex deal,
    subject to high levels of public interest due to the fact that the entity was
    publicly owned.

    Macquarie is considering approaching potential partners to co-invest in


    GIB assets.
    What should Macquarie do?

    Answer: A - A Pension Fund


    The statutory state pension system
    consists of a basic state pension and
    an earnings-related additional
    pension known as the state second
    pension.The entity is publicly owned,
    and so to ‘invest in the public sector
    employees’ is making the most out of
    that current situation.

    As a result, Partner A (a pension fund)


    is the best scenario forward. In
    addition, Macquarie could purchase
    the equity off the pension fund’s
    managers hands when the pension
    fund ends and he/she seeks to divest.
    Scenario 3 - The Price is Right:
    • The GIB portfolio is characterised by assets at mixed stages in their life
    cycles. Some assets are operational and working well; a number of GIB
    assets are still under construction; additionally, some assets are still in
    the “pre-construction” phase, meaning a number of permits and
    contracts have been signed but no tangible asset actually exists yet.
    • For a handful of assets, the UK Government puts forward an offer
    price that reflects confidence in the fact that these assets will by and
    large reach a stage where they are generating healthy and stable
    returns.
    What should Macquarie do?
    • Answer: A - Hire specialists
    − Possible Rationale: Hiring specialists will in turn increase the
    value, and so a decision can finally be made,
    − In addition, by developing the assets, the value would not only
    increase, but more healthy and stable returns will be achieved

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