Kelson Energy is an independent management company focused on the US electric power industry. Kelson provides owners and investors with a well-respected and fully capable management team for short and long term assignments across a wide variety of power businesses and technologies. Kelson specializes in transitional and transactional situations including start-ups, turnarounds, restructurings, redevelopments, acquisitions and strategic divestitures.
Start-ups: Successful start-ups need to have a seasoned and fully functional management platform in place from day one to support rapid growth and to avoid the distractions that often come with building a business infrastructure from scratch.
• Kelson assisted a provider of utility scale emission control systems to start-up a new business unit focused on controlling mercury and air toxic emissions from power plants. By utilizing Kelson’s ready-made management platform the start-up was able to get a jump start on potential competitors and quickly capture a substantial share of the business that new Federal regulations created.
Turnarounds: Turnarounds often can benefit from a new management team to immediately focus on identifying problems and implementing plans to get the business back to profitability.
• Kelson assumed management control of a 3,300 MW portfolio of financially distressed power plants which was being acquired by a financial investor. Kelson refinanced the debt to provide additional time and then designed and implemented tailored plans to turnaround each asset. After the business was stabilized, Kelson arranged to sell the assets individually at a substantial premium.
Restructuring: Financial restructurings create a period of risk and opportunity for power businesses.
• Kelson was retained by a lender group during the restructuring of two power plants in which they had secured claims. Kelson assisted the legal team in the bankruptcy case and helped transition the assets into a new company that the lenders controlled.
Redevelopment: Complete redevelopment of a business is sometimes required to recover the value of an asset when the fundamental underpinnings of the original business plan change.
• Kelson was brought in to redevelop a large cogeneration facility when the industrial host went out of business leaving the cogeneration facility without a steam customer and unable to meet its contractual obligations under a power sales agreement with the local utility. Kelson converted the facility into a stand-alone power plant and negotiated modifications to the power sales agreement to create a profitable business which was then sold to a large, independent power company.
Acquisition, Asset Management and Strategic Divestiture: Timely and well executed acquisitions and divestitures often are the key to making an investment profitable.
• Kelson has managed over 7,000 MW of acquisition and sale transactions on behalf of strategic owners and financial investors including acquisitions via bankruptcy auctions and foreclosures and sales of both equity interests and assets. We implement an active management strategy during the holding period that enhances value for stakeholders.