We define a strategy on how to cooperate, with clear milestones, assemble a project team as your dedicated resources to achieve your goals and deliver results in the most efficient, effective and professional manner. Please note that we require a clear mandate and representation agreement to engage our advisory team members, cooperation partners and resources on behalf of your goal. An advisory engagement makes sense if

• the resources, expertise, network and particular value-add we have to offer make us the suitable advisory partner for you
• we identify a doable strategy with achievable and realistic goals (we don’t mind a challenge)
• we arrive at a fair balance between delivering results and compensation, and sharing risk and success.
• the engagement is within the scope of our focus topics and allows us to expect successful results with a reasonable period of time
• the engagement supports directly or indirectly our targeted SDG goals

We strongly believe in the value of combined expertise and network, and have cultivated a close network of cooperation partners to cover different value components of our services to our clients on a best practice basis. Hence, to assist you best, we may also offer a joint effort engagement with a cooperation partner. Subject to best serving you in terms of resource and expertise, we may also recommend an advisory partner from our network as more suitable to your inquiry.

Based on a short introduction, we evaluate if your project and capital requirement could match the criteria for an investment by five elements capital on stand-alone or club-deal (consortium) basis, and if we can conduct a detailed due diligence as a next step.

If based on screening criteria and/or size of capital requirement we cannot offer a due diligence for our own portfolio, we may offer you to assist on advisory basis to develop an investment strategy with suitable capital partners, or to recommend a suitable advisor from our partner network for your project.

We recommend following considerations regarding capital strategies, relevant for both five elements advisory as well as five elements investments.

projects

• should be fully bankable with all required permits, supply and off-take contracts
• should include adequate contractual de-risking measures
• should be based on market-proven technology or at minimum pilot
• should be based on a solid business case, be financially feasible, be profitable within a reasonable period of time
• should include qualified parties from industry with good track records for execution and operations
• involve a qualified executive team
• should be economically attractive, and with adequate risk-return balance
• should include risk-balanced ownership based on fair valuation
• subject to type of project, it may be favorable if local developer shares risk and has long-term interest (“skin in the game”)
• for five elements investments: smaller-scale decentralized projects are preferred where our sole or club-deal investment can result in board involvement

project developments

in addition to above listed items, project developments should

• allow to reach full permitting within a reasonable and credible time period (clear knowledge of technical, legal and financial tasks, local requirements and regulations, and time line is required)
• should foresee a budget that is adequate in relation to total project investment
• should be led by a committed local project developer, with strong local network and good standing (developer should ideally already demonstrate “ground work”, has invested or will invest in project development, shares project development risk)
• subject to type of project, development consortium with player from target industry adds strategic value and reduces business and financial risk

corporations

capital strategies for already operational corporations are strengthened by

• a qualified and convincing management team and advisory board (adequate balance between technology and industry know-how and business/finance know-how)
• adequate valuation and risk-balanced ownership
• solid business strategy with realistic, achievable goals
• by offering adequate economic upside (returns) in relation to risk
• integrating risk management and governance mechanisms
• capital strategies for companies in early-stage (pre-revenue) should have a pilot or reference case for technology, or proof-of-concept that can be demonstrated, and should be in the space of
  • • recycling and waste remediation
    • new sustainable, non-polluting materials
    • natural soil improvement & sustainable agriculture
    • water conservation, treatment, sewage treatment
    • bioenergy
    • any technology or concept which improves sustainable use of resources, increases competitiveness of sustainable businesses, reduces negative impact on environment
• an equity consortium and advisory board members from target industry adds credibility and strategic value to the venture and reduces business and financial risk
• if capital strategy should be leveraged, such equity consortium is often a prerequisite

philanthropy

In selected cases, not-for-profit or philanthropic projects, have a role to play for environmental purposes. Do you seek funding for your non-for-profit project which you are passionate about ?If your project is within our focus topics, benefits the environment and resource conservation and supports our targeted SDG goals, five elements advisory can offer to support selected not-for-profit projects in preparing and executing a fundraising strategy. Capital strategies for such projects require

• a careful communication of the project purpose, strategy and milestones
• a clear definition of the targeted environmental benefit and how it is measured
• a well thought through governance and monitoring strategy
• a very targeted match between purpose and legal structure of the project with criteria of funding sources and donors