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Case Studies
At Altira, we believe that applying transformative technology to make existing energy sources more efficient is just as important as carefully vetting and supporting technology that will enhance new sources.
That’s why our investments have become increasingly diversified — and increasingly successful for all of our partners.
Here are a few examples of how Altira’s incisive, hands-on involvement in companies with innovative ideas has led to greater efficiency along the energy value chain:
DEEPFLEX,INC.
The Opportunity
Headquartered in Houston, Texas, Deepflex uses a patented design process to manufacture composite risers that are stronger, lighter and more cost-effective than traditional, flexible metal risers. The company’s innovative and corrosion-resistant product is making it possible to push the limits of deep water exploration and production, and to do so more cost-efficiently than ever before.
The Challenge
In order to establish itself as a preferred provider of pipe in the $1.1 billion global offshore industry, Deepflex needed to first extricate itself from an unfavorable partnership and make a fresh start with solid financial backing.
Altira’s Solution
The Deepflex proposition was in line with our longstanding commitment to uncover ways to make all aspects of our global energy value chain more efficient. Working diligently with Chevron, our investment partner, we succeeded in:
- Clearing a path for Deepflex to exit an acrimonious partnership with all the IP necessary to support its prospective business.
- Relaunching the company with an initial funding.
- Helping Deepflex chart its technology development efforts, expand its IP portfolio, build manufacturing capacity and close initial product sales.
- Securing and participating in two additional rounds of financing totaling more than $45 million.
Results
- Following our initial investment, Deepflex built a manufacturing plant and began production of flexible pipe.
- The company achieved initial sales targets.
- Deepflex’s product is highly scalable, making the company an ideal candidate for a future IPO or strategic sale to a major oil and gas service provider.
RIGNET, INC.
http://www.rignet.net
The Opportunity
Founded in 2001, RigNet provides broadband data, voice and video networks necessary for offshore drilling rig and remote onshore operations. This plug and play solution helps maintain the type of real-time, dependable communication that is essential to smooth, safe operations.
The Challenge
Although RigNet had procured its first contract with a Houston-based rig operator, it was limited by the fact that it consisted of only four people and lacked the financial resources to complete the work.
Altira’s Solution
We realized in our initial meeting with RigNet, that the company’s communication and networking concept was a winner. After performing our in-depth due diligence process, we brought in a co-investor and made our initial investment. We then leveraged our expertise to focus on driving RigNet’s growth, including:
- Leading a restructuring of the company’s management team.
- Convening the Board of Directors and recruiting new members.
- Developing and executing plans for two significant acquisitions.
- Devising an IPO strategy.
- Increasing overall investment in RigNet to $30 million (of which, $10.7 million has been directly invested by Altira).
Results
- RigNet currently has more than 400 installations worldwide.
- The company is growing at an astonishing annual rate.
- RigNet has successfully completed two major acquisitions, and an IPO is planned for 2008.
SOUTHWEST WINDPOWER, INC.
http://www.windenergy.com
The Opportunity
In 2002, Southwest had achieved $5 million in annual sales by manufacturing small wind turbines for residential, agricultural and marine use. After successfully capturing the lion’s share of the micro wind power market, the pioneering company was ready to court a broader market of higher volume customers.
The Challenge
Operating without a complete management team and burdened with debt, undependable suppliers and outdated manufacturing processes, Southwest lacked the infrastructure necessary to meet the requirements of its desired customer base.
Altira’s Solution
After carefully assessing Southwest’s potential, we developed a pre-investment checklist. Over the next two years, we partnered with the company’s founders to execute the checklist, and, upon its successful completion, made our initial investment in 2004. In addition, Altira:
- Led the effort to identify and hire a top quality CEO with 30 years’ experience in manufacturing precision aircraft parts, as well as a new CFO.
- Collaborated with the Board of Directors and company management to reengineer the company’s processes and systems, which led to near 100% on-time delivery and better supplier performance.
- Assisted in raising an additional $13 million in capital.
Results
Southwest has successfully completed its work with the National Renewable Energy Laboratory (NREL) to develop a breakthrough wind turbine. Virtually silent and capable of working on or off the grid, the low-speed Skystream 3.7 has been extremely well received by volume manufacturing and mass-market customers.
- Sales are growing at a high rate.
- The company has raised another round of capital at a pre-money valuation of nearly threefold.
- Southwest Windpower has been featured on the CBS Evening News, ABC’s Extreme Home Makeover, National Geographic, and the Wall Street Journal.
- Investors are anticipating a successful, profitable exit, either by virtue of acquisition or initial public offering.
WIND LOGICS, INC.
http://www.windlogics.com
The Opportunity
Based in St. Paul, Minnesota, WindLogics had been working in the plume analysis industry until 2003, when it decided to apply its expertise to creating a sophisticated web-based weather workstation tool for optimizing wind turbine placement. Based on real-time data that was more cost-effective and complete than traditional sources, the company’s tool offered truly revolutionary capabilities.
The Challenge
In order for WindLogics to realize its vision, it needed to make the successful leap from the plume analysis sector to the wind industry.
Altira’s Solution
A longtime advocate of wind power, we drew on years of in-depth experience to assist WindLogics in its successful entry into the wind industry, inclusive of:
- Validating the viability of moving from a government-based plume analysis model to a wind industry model.
- Leading a rebranding effort designed to achieve immediate and significant brand awareness, thereby completing the transition from one industry to another more quickly.
- Recapitalizing the company as a result of our initial investment and advising in the sale of the company to FPL.
Results
- WindLogics successfully entered the wind industry, has grown rapidly and enjoys global brand awareness.
- The company has won numerous American Wind Energy Association technology awards.
- Altira managed a successful exit, achieving IRRs in excess of 70%.
Making It Work
Nobody does as much as Altira when it comes to providing the kind of guidance and support an entrepreneur or portfolio company needs in order to succeed in today’s competitive marketplace. And our results prove it.