Case Study:

Infrastructure Fund Client

Infrastructure Fund | 2020

Infrastructure Fund | 2020

Atrium provided due diligence support to a U.S.-based infrastructure fund seeking to acquire a large hydroelectric station in the Southeast U.S.. Atrium’s expertise was utilized to identify and help mitigate risks associated with contractual obligations, project operations, and the FERC relicensing process.

CHALLENGE

Atrium’s client, an independent fund manager with a long-term approach to infrastructure investing asked Atrium to advise in its evaluation of an investment in the 192 MW Sidney A. Murray Jr. Hydroelectric Station, the largest hydro project in Louisiana. This client invests in high-quality regulated and contracted infrastructure assets that provide essential services to their communities and achieve sustainable cash yields over their long operational lives.

EXPERTISE

Atrium’s scope included the evaluation of issues and risks associated with:

  • The Federal Energy Regulatory Commission (“FERC”) and the FERC relicensing process for the Project;
  • The U.S. Army Corps of Engineers (“USACE”) and impacts of current and future USACE operations on flows available to the Project; and
  • The City of Vidalia, Louisiana, a co-licensee of the Project, and the City’s option to purchase the Project at a specified future time.

OUTCOME

Members of the Atrium team previously led development of the largest pipeline of new hydroelectric projects in the US, and are therefore intimately familiar with all regulatory, operational and financial aspects of hydropower project development, ownership, and relicensing. Using its extensive expertise coupled with rigorous, objective analysis, Atrium identified and provided insight into both opportunities and risks associated with the project that aided the client in structuring a bid that maximizing their upside while mitigating any potential risks.

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