Co-Founder @ Phalanx Impact Partners | Sustainable Finance | Climate Technology | Investment Banking | Energy Transition | Capital Structure | Capital Raising | Risk Management
We believe that one of the challenges impeding capital formation for sustainability and energy transition companies during 2024 is perceived political risk around the upcoming Presidential election. We believe that this is particularly true for companies or projects that rely on the Inflation Reduction Act. ? While understandable, these concerns may be more about headlines vs. substance as what started as a deeply partisan bill (in August 2022 every Democratic Senator voted for the legislation and every Republican voted against) has become a program that is disproportionally benefiting Republican states. ? Among the top 10 overall beneficiary states, the majority have either or both of a Republican governor or Republican senators, which suggests that significant amendments or attempts at repeal would be politically challenging and contradict local self-interest. We would be interested in hearing about how fellow investors are navigating this dynamic and if you see opportunities in this pre-election environment?