Established in 2012, by our founder Matthew Bradfield, Saviva Capital was originally formed to act as the US-based investment vehicle for his global family office. Now, Saviva Capital acts as an investment and asset manager for international, family-office, private investor, and UHNW-linked clients. Saviva specializes in the sourcing, selection, and management of direct venture and private-equity investments in the “Renewables” sector.
Our Macro Thesis
A super-cycle of global debt accumulation at sovereign, financial sector, corporate, and consumer levels will alter the investing landscape for years and decades to come. Private sector debt is being transferred to public sector balance sheets and sovereign debt burdens across the world are rapidly becoming unsustainable. Significant monetary expansion is occurring in an attempt to ease market conditions and monetize debt burdens.
Increasing debt, painful deleveraging, currency debasement, inflation, and potential sovereign defaults will define the investment landscape for many years. In this context, markets will be volatile and uncertain; confounding investors in the search for both yield and inflation protection.
However, certain investments should benefit relative to other asset classes. Particularly, investments relating to the low-cost production of essential commodities (which are among the most attractive). These businesses and projects can generate ongoing cash flows that are inherently inflation-hedged. We believe that certain investments in Renewables with simple supply chains, negative regulatory risk, opportunities for IP ownership, and large upside opportunities in the broad deployment of Renewables technologies and business models are particularly attractive.
Our Renewables Sector Thesis
We define Renewables businesses as those enabling the low cost production and efficient management of essential commodities with reduced environmental impact. This includes a focus on food, energy, basic materials, and other essential commodities.
Commodity demand growth, combined with accelerating improvements in physical technology, information and communications technology, and financial markets are driving exciting investment opportunities in Renewables that we believe most institutional investors are missing.
Investment performance in Renewables thus far is largely a story of failure, particularly among venture capital investors. However, these widespread failures in venture capital ‘cleantech’ investment offer lessons on the avoidance of certain investment strategies and business models. Investors have failed to generate returns with the same hype-focused strategy that generated success in the IT sector, and have been confounded by the high-capital intensity of most commodities production businesses, the barriers to entry in developed economies, and the long timelines associated with technology commercialization.
Investment success in Renewables will require deep technology and market expertise in order to identify which technologies can truly compete, and when, where, and how they will be preferential to the status quo. Our purpose is to enable this success through proprietary research – supporting our clients’ informed and advantaged investment decisions in the Renewables sector.