Uniting the energy frontier

The global energy transition, well underway in the developed world, is now beginning to be replicated in frontier markets, but with structural tailwinds that are even more powerful. Population growth, urbanization, and industrialization were already driving electricity demand at rates that incumbent utilities could not meet, and now the global demand for AI is turbocharging markets. The gap between supply and demand is widening everywhere.

Simultaneously, the cost of renewable generation has collapsed. Solar, wind, and hydro are now the cheapest sources of new electricity in most of our target markets. We spot an opportunity in this alignment. The economics are compelling, the need for better generation is acute, and political support is increasing, driven by AI needs and energy security concerns.

Catharsis was launched to operate in this environment. Our management and advisors have over 150 years of experience investing and operating in frontier markets. We understand the regulatory complexity, the currency dynamics, the counterparty risk, and the technical operational requirements. Frontier markets are our natural habitat, and our conviction now rests on conditions that have shifted decisively in our favor. Uniting disparate assets is hard but worthwhile work. Increased market power and a rerating is a logical consequence.