"There are a range of different ways to invest in the energy transition thematic," Fortitude explains, adding that the opportunities on the periphery often present the greatest value.
As Australia moves away from legacy fuels like coal and gas, and towards to more sustainable sources such as wind and solar, clear investment opportunities in large infrastructure and energy generation industries are emerging.
But it is outside of these opportunities, in the companies on the edge of the great energy transition, where the real intersection of value and growth potential lies according to Fortitude Investment Partners. While the big thematics will drive the primary sectors, Fortitude believes the companies that will be depended on to fuel and support these growing industries are the ones that can not only flourish, but but do so at an attractive entry point for the right investor.
And Fortitude is not just any investor. The team, run by founders Nick Dignam and Nick Miller, specialises in taking significant stakes (anything from around 40 per cent to 100 per cent) in Antipodean companies that have an enterprise value of between $10 million and $80 million. They then leverage a network of industry experts to help profitably scale the business to a point where its value makes it a feasible investment target for a larger lender or buyer.