Investment Strategy
Approach
Azimuth invests growth capital for the energy transition, prioritizing attractive strong risk-calibrated returns and efficient carbon dioxide mitigation.
Outside of the commonly addressed areas of solar and wind projects, there are underappreciated yet compelling opportunities that require growth equity capital to realize their full potential. Azimuth’s 20+ years in the energy sector, deep technical expertise, and project development experience enable us to identify and capitalize on energy transition opportunities that seek to cross the valley of death successfully.
By selecting proven technologies and complementing them with our in-house development experience, our investments significantly mitigate the risk associated with those projects while pursuing meaningful carbon mitigation.
Strategic Focus
Azimuth’s fifth fund, Azimuth V, is fully dedicated to the energy transition. The fund’s investment thesis is built around three focus areas that closely align with our team’s expertise, namely Low Carbon Fuels, Battery Materials and Baseload Clean Power and Storage.
Decarbonizing fuels is one of the key challenges of the energy transition, especially in applications that are not easily electrified, including heavy duty road transportation, aviation, shipping, iron and steel production, and chemicals. Azimuth was founded by traditional operators with a history of execution excellence in molecules, creating team differentiation in a high potential sector that includes decarbonized hydrogen, ammonia, and carbon capture solutions, to name a few.
Both long and short duration storage are key to transforming our electricity grid into a resilient system powered by renewable energy. Azimuth sees undertapped opportunity in specific materials that catalyze battery innovation and production. The Azimuth team has long-standing experience in mining and extraction, providing the relevant expertise to enable sustainable production of battery materials.
Azimuth focuses on non-traditional sources of renewable power that can generate baseload power more consistently than wind and solar. With rising electricity demand across existing and new use cases, and an increased share of intermittent power production, long duration storage also plays a significant role in contributing to baseload capacity.
Investment Criteria
When making investment decisions, the following criteria must be met:
- Achieve efficient carbon abatement
- Post-venture, pre-infrastructure technology ready for commercial deployment
- Underinvested areas positioned to generate strong risk-calibrated returns
Origination
Over the last 20 years, Azimuth has built a deep network in the energy and transition ecosystem with founders, fellow investors, industrial strategics, engineering procurement and construction companies, and key financial institutions. This network generates many origination opportunities.
What differentiates Azimuth most on the origination front, is our in-house development platform. For investment opportunities with high potential that are too early for Azimuth V capital, Azimuth may create a development company (“DevCo”) using Firm resources and GP capital to advance these companies to a stage of Azimuth V relevance. This provides us with unique access to differentiated investment opportunities that align with our strategy and investment goals.
