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Focusing On Deep Decarbonization

Fortescue Capital will invest in deep decarbonization products and projects, with a prioritization on hard-to-abate sectors. 

 

Fortescue Capital will advance products and projects with an attractive return profile that not only assist in Fortescue’s decarbonization efforts, but execute large scale, industrial solutions to transition the world economy. 

 

To demonstrate alignment, Fortescue will provide significant equity commitments alongside Fortescue Capital, meaningfully derisking transactions ahead of being offered to investment partners.

 

As part of Fortescue’s mission to drive global decarbonization, Fortescue will typically be a significant consumer and key customer of its products and projects upon completion.

Target Return Profile

13-16% Net IRR

Infrastructure

>20% Net IRR

Private equity

25% Net IRR

Growth

Dedicated investment approach:

  • Focus on deep decarbonization with a priority on hard-to-abate sectors
  • Invest across the continuum from growth transactions through buyouts to yielding infrastructure investments
  • Global investor base across sovereigns, pensions, endowments, and asset managers 
  • Investment size from US$50mm to US$5+bn 
  • Patient, aligned capital providing liquidity options for co-investors
  • Disciplined investors focused on key fundamentals and pre-identified upsides
  • Thorough due diligence developed through industry expertise and experience
  • Judicious use of financial leverage
  • Leverage the proprietary pipeline and resources of Fortescue
  • Active management applying an operational mindset and execution methodology to create value
  • Commitment to responsible investing principles and climate justice

Investment Profile

Fortescue Capital seeks investments that offer early access to opportunities, sustainable long-term returns, superior risk-adjusted potential, and scalability. Critical factors include proven technologies, established demand, high barriers to entry, exceptional leadership, and the ability to create operational value.

Key investment attributes:

  • Early mover access to opportunities
  • Path to sustainable long-term, inflation-linked cash yield
  • Superior risk adjusted return potential
  • Narrow deviation of return outcomes
  • Closed loop potential
  • Opportunity to create value operationally
  • Criticality: a fundamental need for the product/service or for the company to exist
  • Scalability: the capacity to significantly expand market reach and/or applications
  • Proven technology
  • Established demand profile
  • High barriers to entry
  • Exceptional leadership