Pegasus Sustainable Century expects to bring expertise and growth capital to at least several dozen individual companies so that they can scale into commercial adoption more rapidly. Each of these companies will have the potential to transform a significant segment of industry with more efficient, sustainable solutions with environmental benefits including pollution reduction, improved energy efficiency, reduced resource use, or enabling of markets to speed adoption of solutions and practices.
Providing investment capital is only the initial phase of cultivating and scaling sustainable solutions. Pegasus Sustainable Century will work closely with companies in its existing portfolio to bring these solutions to scale rapidly by leveraging its expertise in policy direction, business operations, transactions, and strategic partnering for sales channel access.
This commitment began by Pegasus Sustainable Century seeking over in investment capital from private sources. A pipeline of high-potential investments in resource efficient businesses ranging from energy efficiency in building operations to closed-loop recycling solutions to organic food products to renewable electrical power generation to green building materials was developed in the months prior to the inception of this commitment. These businesses can more rapidly scale their solutions with the addition of investment capital and business expertise from the Pegasus Sustainable Century team.
Estimated timeline for completion of funding and investment:
2Q09: Begin sourcing and qualifying initial investment portfolio of resource-efficient businesses.
3Q09: Begin fundraising via private placement to qualified investors.
4Q09: Begin investing in companies.
1Q10 -on: Cultivating growth companies with scalable solutions and additional investment.
3Q10: Complete fundraising.
At full implementation, Pegasus Sustainable Century expects to have a portfolio of at least several dozen businesses bringing scalable and sustainable solutions to meaningful segments of the economy at a profit. These businesses will create significant environmental and economic benefits as resources such as energy and materials are used more efficiently and jobs are created as the companies grow.
While the past century was defined by resource-intensive and inefficient industrial processes and businesses, the next century will be defined by a focus on resource efficiency and sustainability. Rising and unstable energy prices, scarcity of resources driven by population growth, affluence, and climate change make enabling the businesses that can successfully compete on the basis of resource efficiency a compelling investment thesis that also facilitates significant environmental benefits at a scale appropriate to the urgency of the need for solutions. Potential technical breakthroughs in laboratories around the world offer promise, but with timelines that are far in the future, while financing already-planned projects often does not bring truly forward-looking solutions to market.
Pegasus Sustainable Century is a new business model leveraging the strength of private enterprise to scale specific sustainability solutions which have the proven potential to transform a variety of meaningful industries. The existing Pegasus Capital Advisors team represents world-class talent in the fields of transactions, business operations and policy, bringing significant knowledge and insight along with growth capital to businesses striving to achieve greater scale and impact. A division of Pegasus Sustainable Century will provide advisory services for companies with sustainable solutions in the eight target sectors, working with them to develop strategic partnerships, market strategies, and business plans to achieve competitive success.
Pegasus Sustainable Century has access to a team of over 50 experts in transactions, business operations and policy who will work as an integrated team to provide creative capital solutions across a range of industries to companies that either participate directly in the market for resource-efficient products or enhance the value of their core businesses by incorporating sustainability strategies. These companies offer superior growth potential in an environment characterized by scarcity of resources, increasing market demand for sustainable products, and public policy transformation.
These businesses, such as Lighting Science Group which makes an LED light that is 90% more efficient than a regular bulb with no toxicity, iGPS which makes a high-efficiency shipping pallet that is 30% lighter, more durable, and recycleable as compared to traditional pallets and Universal Lubricants which is offering a lubricating motor oil that is re-refined from used motor oil that would otherwise end up down drains or in incinerators, are transforming important and substantial segments of the U.S. and global economies.