Blue Rock’s Asset Management Plan: Active stewardship to optimize returns
Blue Rock’s asset management practices and procedures have one central objective – to proactively monitor a client’s investment to identify, report on, and mitigate potential risks that could result in a suboptimal investment outcome. The practices and procedures have been developed through years of originating and managing renewable energy investments and are continually updated based on feedback from past investments and broader industry trends.
We employ a comprehensive asset management plan to monitor, report on, and mitigate potential risks that arise from: (1) Construction Risk; (2) Operational Risk; (3) Counterparty Risk; and (4) Return Risk. To track the major areas of risk within an investment, Blue Rock monitors specific indicators that experience has shown us provide meaningful windows into the health of an investment. Blue Rock reports on these indicators to our investors in the form of monthly, quarterly, and annual asset management reports.
Blue Rock is driven by the belief that we are stewards acting on behalf of our investor clients, and with the understanding that our success is contingent on each of our clients achieving their own investment objectives.
Our asset management plan begins in origination – before a term sheet is ever issued. Effective asset management is a continuous effort that must be integrated into all aspects of making and managing renewable energy investments. Detailed transaction documents with clear underwriting standards and reporting obligations are a foundational piece of asset management.
Blue Rock’s asset management work continues as each project is constructed, and throughout the operational phase of the investment. During these periods, Blue Rock tracks and reports on indicators within each investment, such as operational performance, investment cash flow, and tax allocations. These indicators provide valuable insights that could suggest the possibility of a negative investment outcome. Tracking the indicators enables Blue Rock to proactively identify and work to resolve potential problems arising within the investment in real time.
If you would like to learn more about Blue Rock’s asset management practices, please Contact Us and request a copy of our comprehensive Asset Management Plan, which describes how we systematically track, manage, and report on each of our investments.