It is not easy for all companies to get into oil and gas finance. This is because the number of variables and unknowns is just too high. Just to put it in simple words, you do not know which the areas are where you can strike oil, and it has to be tested. The depth might be another deterrent, and so could be the width of the basin. After overcoming all these unknown factors, if you do manage to find crude oil, you are not sure how viable the extraction would be. Then there would be issues with the storage and transmission as well. The whole story is so complicated, convoluted, and uncertain, that only companies with a strong heart and deep pockets can venture into this sector.
This is where companies like Kapok Capital come in. It takes its names from the Kapok tree, which is easily recognized by its wide roots and reassuring shade. They have more than a decade of successful energy project finance. They have provided dependable financing of such projects in several continents of the world. They have a robust network of investors in the form of high net worth individuals, family offices and even wealthy investors who prefer to remain anonymous.
Kapok has developed expertise in arranging for both debt funding as well as equity financing. In a debt scenario, the investor is content with getting timely interest on the amount invested and doesn’t claim any rights on the company or ownership of profits (or losses!). This is usually referred to as an infrastructure debt fund. In an equity investment, the investor comes in as a shareholder of the company and is liable for any of its losses while also being eligible for a share of any profits that might accrue. Such investors are usually more finicky about the strengths and weaknesses of the company they are about to invest into, because if it has a weak fundamental structure, then the likely losses would wipe away the investment.
Apart from energy efficiency financing, Kapok is also involved in Mergers and Acquisitions advisory for all the companies involved, on account of their deep industry of the oil and gas sector. They would carry out due diligence for the balance sheet, including a thorough inspection of all receivables, assets, debts, and all kinds of legal or political issues. This ensures that the newly formed entity does not fall into any legal or political problem later on.
This is where companies like Kapok Capital come in. It takes its names from the Kapok tree, which is easily recognized by its wide roots and reassuring shade. They have more than a decade of successful energy project finance. They have provided dependable financing of such projects in several continents of the world. They have a robust network of investors in the form of high net worth individuals, family offices and even wealthy investors who prefer to remain anonymous.
Apart from energy efficiency financing, Kapok is also involved in Mergers and Acquisitions advisory for all the companies involved, on account of their deep industry of the oil and gas sector. They would carry out due diligence for the balance sheet, including a thorough inspection of all receivables, assets, debts, and all kinds of legal or political issues. This ensures that the newly formed entity does not fall into any legal or political problem later on.
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