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Middle East-based renewable energy company due diligence

In early 2023, a European infrastructure fund was looking to do business with a Middle East-based renewable energy company.

They wanted to understand the extent to which the company’s chief was linked to a Middle Eastern ruling family, and whether he was using this alleged influence to benefit his fund by securing deals. They also wanted to understand the fund’s track record in other deals, the reputation of the fund and its principals, whether it used corruption or improper business practices to win contracts in Africa and elsewhere. They requested we find out where the subject company’s funds came from – was there family wealth or were they raising external finance?

We carried out the following work:

  • Completed a thorough survey of the subject company’s history and how it had obtained power contracts (i.e. responding to government tender or through private negotiation – the latter tends to have more room for malfeasance).
  • Identified in what countries it was most entrenched – one in North Africa and two in sub-Saharan Africa – and deployed resources there. We tasked our local associates in these countries to dig into the company’s local reputation and track record. In these three countries we also obtained local corporate records to see whether there were any other shareholders in the local set-up.
  • In the country where the company was based, we spoke to several sources familiar with the business scene to discover the background of the chief and his connections with the local elite.

We delivered a 32-page report based on our findings and conversations with some 25 sources over four jurisdictions.

To find out how we can carry out a similar service for your company, please contact Eleanor Gillespie at [email protected]