AMP Capital

Mazars has been assisting AMP Capital since 2019 to develop an operating model for its project portfolio multiple jurisdictions in USA, Canada and Mexico.

Client background

AMP Capital is a global investment manager headquartered in Sydney, Australia. Backed by a truly global infrastructure platform AMP Capital acquired 50% stake in Invenergy’s 2.68GW thermal power portfolio. The platform includes seven operating natural gas-fired power plants totalling 2.68GW in the USA and Canada. It also includes two late stage development projects in Mexico, along with several early-to-mid stage development projects. The deal marks AMP’s entry into the US power sector.

Our Role

Working closely with the US based AMP Capital team, Mazars developed a portfolio financial model in relation to a portfolio of projects across multiple jurisdictions. The model was developed to track the portfolio’s performance with regular updates of the historical financials and ability to forecast the project operations and finances. The model is in use to value the portfolio for the AMP and its shareholders. As financial modelling experts we developed a simplified, robust and easy to use model for the various stake holders, which includes but not limited to asset managers, fund managers and valuation agents. The model has been tested for the time with historical updates and supported various commercial and financial updates of portfolio, allowing for:

• General decision-making and sensitivity analysis across individual projects and the portfolio; Refinancing analysis; Valuations and bridging the valuation over time and against the acquisition case (variance analysis);
• The incorporation of historical actuals into the model to drive future forecasts; the assessment of future pipeline projects and their addition to the portfolio; the valuation of exit-scenarios and the assessment of tax leakage at blocker and fund level.

Project outcomes

• the model helps with ongoing operational management and shareholders reporting purposes of projects under up to four different tax regimes;
• the model helped in the refinancing of the existing debts both at the project holding company, and fund company levels;
• the model is used for asset management and shareholder reporting purposes; including calculating portfolios investors global IRR;
• the model is able to provide a reliable valuation of the of project returns to support negotiators and decision makers;
• used by and relied upon by project finance banks and other prospective equity and debt investors and counterparties in their review and consideration of the project, as well as in the modelling of the multiple scenario and sensitivity cases which such third parties need in their investment and credit appraisal.