In evaluating potential investment opportunities on a global basis, KPC EVI places an emphasis on assessing an opportunity's long term strategic fit within the targeted technology areas. In a parallel process, the KPC EVI team evaluates the technology's potential impact on long-term oil use and its ability to reach full-scale commercialization or grow its market share. Provided that the company meets these investment criteria, the team then assesses whether a targeted technology merits an equity investment.
As part of its overall strategy, KPC further takes into account the degree to which it can add value and influence a company post its investment. For example, by leveraging the resources of KPC's global oil franchise and corresponding network, the KPC EVI team has been able to assist companies in technology feasibility studies, product market assessments, and specific strategic and operational initiatives.
PORTFOLIO STRUCTURE
KPC EVI is structured to pursue a combination of direct and indirect investment opportunities across a range of early, mid or late stage technology companies. Accordingly, KPC EVI has adopted a three-pronged investment approach which leverages a combination of internal and external expertise and networks of relationships:
Strategic Partnership Fund-of-Funds – To date, KPC EVI has invested in six leading clean technology and alternative energy venture capital managers as a "strategic" limited partner. Through these relationships, the KPC team has been able to leverage the experiences of and learning from its managers while also generating a steady flow of indirect and coinvestment opportunities in areas which meet KPC's technology profile.
Direct Investment Fund – KPC EVI is also deploying capital on a direct basis through a more traditional corporate venture capital structure. KPC EVI is sourcing and executing transactions across the globe as both a lead investor or as a co-investor. This type of investment allows KPC EVI to actively focus on a narrow sub-set of the clean technology industry.
Technology Innovation Fund – Recognizing the importance for funding research, proof of concept and early stage opportunities that have yet to reach the domain of venture capital involvement, KPC EVI also provides small capital commitments to partnership institutions. These include select universities, government laboratories and other research focused entities. Through this initiative, KPC EVI maintains strategic relationship with the Industrial Liaison Program of the Massachusetts Institute of Technology.