Renewables Infrastructure
A Better Way To Own The Future
Declining Cost of
Renewable Power
Global Decarbonization Initiatives
Multi-Decade Green Investment Opportunity
2 min Renewables Energy Update: A German Company Signs A Contract in Texas
A German company (RWE) signed a contract with a hyperscaler (Meta) in Texas, giving us an opportunity to discuss several topics simultaneously. First, what the customer wants, the customer gets. Meta has internal mandates to reduce its carbon footprint and has signed a deal with RWE to help achieve this goal. Meta is not alone, as it joins other hyperscalers in signing contracts for renewable energy, which demonstrates that demand remains healthy. Second, hyperscalers are entering these agreements due to their enormous energy needs. This surge in demand reinforces our long-held belief that the world requires more supply from ALL forms of energy. Finally, the RWE project will be built in Texas and adds to another project Meta signed in Louisiana. These are solidly Republican states, suggesting bipartisan support for existing tax credits that favor renewable energy. We believe the public markets haven't yet recognized these connections, though recent corporate actions imply that the private sector has and is taking advantage of the deep value found in renewable energy infrastructure.
Investment Highlights
Global Megatrend
Policy Tailwinds
Long Term Growth
Current Income
Renewables Infrastructure companies generate cash flow from long term power purchase agreements (PPAs). That cash flow is paid quarterly to investors, providing significant portfolio income.
Lower Volatility
Invest in the Energy Transition with lower volatility than other Renewables investments, which often invest in pre-revenue, more speculative companies. Investing in mature companies with real cash flows can reduce volatility.
Better Risk Adjusted Returns
The reliance on mature companies with stable cash flows has resulted in better risk-adjusted returns to investors. Add income and stability while participating in the Clean Energy Megatrend.
Investment Options
Eagle Global Renewables Income SMA TrueShares Eagle Global Renewable Energy Income ETF (RNWZ)
The Eagle Edge
Experience
Insight
Meet the Team
Michael Cerasoli, CFA
Portfolio Manager
Michael leads the Renewables effort at Eagle Global Advisors, including the development of active and passive strategies, and portfolio management. He is also the Co-Head of the Energy Infrastructure team and Co-Chair of the Energy Infrastructure Investment Committee. He shares Portfolio Manager responsibilities for the firm’s four separate Energy Infrastructure strategies. Prior to joining Eagle in May 2014 Michael was employed by Goldman, Sachs & Co. for ten years where he covered Midstream for seven years and small/mid cap Oil Services for three. Prior to Goldman, Michael worked for three years as a sell-side equity trader at various Wall Street firms. He earned bachelor’s degrees in Economics and History from Union College, and an MBA from the Hagan School of Business at Iona College. Michael holds the Chartered Financial Analyst designation.
Alex Meier
Portfolio Manager
Alex serves as Co-Head of the Eagle Energy Infrastructure team and Co-Chair of the Energy Infrastructure Investment Committee. He shares Portfolio Manager responsibilities for the firm’s four separate Energy Infrastructure strategies. Prior to joining Eagle in 2013, Alex was employed by Waterfront Capital Partners as a Portfolio Manager focusing on Exploration & Production, Midstream & Utilities. Prior to Waterfront, Alex was a Managing Director at Zimmer Lucas Capital focused on E&P, MLP and utility securities. Other past work experience includes corporate development and financial planning at UniSource Energy and investment banking at Lehman Brothers. He earned a bachelor’s degree in Economics from the University of Chicago.
Steve Sherowski
Vice President
Steve serves as an Investment Analyst on the Energy Infrastructure Team and is a member of the Energy Infrastructure Investment Committee. He is the primary analyst on multiple infrastructure companies, both in renewable and traditional energy located in several jurisdictions like Canada and Europe. Prior to joining Eagle in 2017, Steve was employed at Goldman, Sachs & Co. covering pipelines and MLPs. Prior to Goldman, Steve worked as a sell-side analyst at various Wall Street firms including Bank of America Merrill Lynch and BMO Capital Markets. Steve earned his bachelor’s degree from Syracuse University and an MBA from NYU Stern.
Steven S. Russo
Senior Partner
Steven is a co-founder and Senior Partner of Eagle Global Advisors. Steven serves as Director of Client Service and is a member of the investment committees for the firm’s strategies. He is also a Portfolio Manager for a variety of institutional and high net worth clients. Prior to founding Eagle, Steven was employed by Eagle Management & Trust Company and Criterion Investment Management Company. Steven earned a bachelor’s degree in Finance from the University of Texas and an MBA from Rice University. Steven also serves as a Board Member of the M.A. Wright Fund at Rice University’s Jones School of Management.
Edward R. Allen III, Ph.D., CFA
Senior Partner
Eddie is a co-founder and Senior Partner of Eagle Global Advisors. He serves on the management committee and all investment committees of the firm. In addition to being a co-manager of the Eagle MLP Strategy Fund, he is a Portfolio Manager for a variety of institutional and high net worth clients. Eddie is a co-creator of many of the portfolio strategies and proprietary investment management tools of the firm. Eddie received a Ph.D. in Economics from the University of Chicago and his B.S.E. in Engineering from Princeton University. Eddie holds the Chartered Financial Analyst (CFA) designation and is also a member of the Houston CFA Society. He currently serves as Treasurer of the Asia Society Texas Center and is on the board of the Menil Collection.
