Energy Finance
Electricity demand is accelerating, but development remains constrained by grid complexity and capital mismatches, particularly in the middle market. We deploy flexible capital for the next buildout of power generation.
As electricity demand accelerates and interconnection queues swell, grid access has become the primary bottleneck in U.S. power markets.
Overlay provides capital at this point of constraint, enabling projects to secure and maintain their queue position — capturing value for energy developers.
A Structural Inefficiency
Development-stage power projects in the middle market remain structurally underserved. Traditional lenders typically avoid facilities of this size, with shorter durations, and complexity, particularly prior to full construction notice-to-proceed. At the same time, evolving regulatory frameworks and interconnection requirements continue to increase upfront capital needs.
By focusing on this segment, the strategy targets opportunities where pricing reflects perceived complexity rather than fundamental credit risk. This positioning allows us to capture attractive risk-adjusted returns without competing in commoditized construction or permanent capital markets.
Structured for Downside Protection
We deploy capital where collateral resides in tangible project assets, secured development rights, and regulated infrastructure deposits. Transactions are typically over-collateralized and embedded within established recovery or refund mechanisms.
This structural positioning creates differentiated risk exposure relative to merchant energy strategies or conventional construction lending.
High Convexity by Design
Predictable yield, controlled duration, and embedded upside participation.
Our loan facilities are generally short-to-medium duration and structured for upside alignment. Beyond current yield, negotiated exit premiums and buyout fees provide return enhancement as projects de-risk and mature, creating asymmetric outcomes relative to downside exposure.
Financing Development-Stage Storage at the Point of Constraint
This segment remains underserved. Traditional lenders often avoid development-stage facilities of this size and duration, while regulatory changes continue to increase funding requirements.
By focusing on lower middle and middle market developers, the strategy captures attractive pricing relative to structural risk without competing in commoditized construction finance.
Risk Discipline
Underwriting is grounded in utility-specific tariff analysis, queue sequencing, deposit erosion mechanics, and sponsor capitalization. Transactions are sized to maintain collateral coverage across defined timelines and refund outcomes.
Downside protection is driven by regulated refund mechanics rather than forward power pricing or asset appreciation.
Energy Finance Track Record
"We focus where complexity creates opportunity — and where others lack the patience to operate."
Combining grid-market expertise with an active developer ecosystem
Our principals bring deep experience in interconnection mechanics and power project development, enabling disciplined underwriting and early identification of funding needs. Having invested equity and provided loans within the developer ecosystem, we understand the capital sequencing and risk inflection points embedded in modern power asset development.
We operate as a specialized capital partner, not a generalized lender. Our underwriting reflects direct exposure to queue strategy, study risk, network upgrade uncertainty, and deposit structuring. Embedded in the developer ecosystem, we see opportunities forming and understand where capital unlocks value across the power generation lifecycle.