What differentiates a top quartile renewable energy asset manager/fund?

Renewable energy asset performance management is maturing as the industry develops with yield/returns top of everyone’s mind. Every asset manager and fund manager in the sector is striving to grow their assets under management (AuM) by raising more funds an acquiring more assets. The difference between the top quartile and the rest is related to their capacity to deliver growth in their asset base while at the same time creating efficient scalable processes and systems to deliver sustainable target returns to investors at the expected risk levels.

Specifically, the best in class devote time and resources on:

  • Strategy: They adopt and articulate a clear strategy. Many non-top-quartile asset managers/funds do not have a crisp clear strategy and are thus subject to making ad hoc decisions. The latter approach destroys trust with investors.
  • Product: The instil a rigorous ROI focus within their organisations, with proactive portfolio maintenance a norm. This is in contrast to an AuM focused organisation with reactive portfolio reviews.
  • Investment Management: The best-in-class develop advanced data analytics and make them central to decision naming. This is in contrast to the siloed investment decision making approach.
  • Operations: Top performers adopt key metrics like AuM per employee. This drives process automation and outsourcing, as it’s everyone’s’ job to keep head-count lean. 
  • Technology and Data:  Not only is data seen as strategic asset within top performers, but it’s secured on a modern technology stack with built in controls and compliance functionality. Often data is across multiple sources, conflicts within each other and is incomplete. Recording information on MS Excel creates resource dependency, creates audit issues and is simply a poor choice to run a regulated business on.
  • Organisation & Talent: There is a trend that not all staff working for asset managers/funds need to be finance people with investment career paths. The talent required for a successful operation needs to have a diversity of capabilities, with the demand for tech talent to work in cross-functional teams on the rise.

fincovi provides financial services to the renewable energy industry including specialist BPO services, asset optimisation and advisory. Please drop us a line if you want to know more about how we can help you become a top performer.

*PWC Asset Management Benchmarking | Alternatives