Carey International Group (CIG) is a diversified holding company focused on growing North American assets in the energy/renewables, commercial real estate, and financial services sectors. Pulse 2.0 interviewed CIG Chief Investment Officer Christopher Kane to learn more about the company.
Christopher Kane’s Background
What is Christopher Kane’s background? Kane said:
“My background is that of a structure finance professional in the commercial real estate and energy space. After a short career in the automotive fleet business, I made my way to commercial real estate and renewables with a series of roles at various companies. Starting in consulting and litigation support engagements for energy and renewables assets, I supported owners, developers, and asset managers with actionable data on their assets. When the need arose to transact, I gradually moved into the brokerage and debt space. Ultimately, I became responsible for assembling capital stacks, both debt and equity, to facilitate transactions. Fast forward a few years, having acquired proficiency in the disciplines of underwriting, consulting, sales, structuring, transacting, and managing assets impacts my work every day, and I bring that to every transaction at CIG.”
Evolution Of CIG’s Thesis
How has CIG’s thesis evolved over time? Kane noted:
“CIG Companies, while young on paper, is the result of decades of our founder’s and principal’s business activities. As legacy franchise finance, direct lending, and capital markets intermediary services began to wind down in 2022, CIG searched for adjacent opportunities that would utilize the company’s core competencies in capital formation and structuring, deep familiarity with real property assets, and risk management. It was decided that energy and commercial real estate pursuits fit those criteria and could offer the necessary risk-adjusted returns.”
“The historic thesis centered around building durable, long-term, and profitable businesses complementary to the communities in which we work and invest. The thesis hasn’t changed much over time, but our focus on the safe risk profile of the assets and our institutionalized capital/investment sourcing has pushed our founders, partners, and employees to think more deeply about our commitment to deliver what we promise to every investor.”
Favorite Memory
What has been your favorite memory working for your firm so far? Kane reflected:
“As avid fans of college football and specifically the University of Michigan, we were treated to an amazing run, culminating in their winning the national championship. CIG brought together clients, partners, employees, and investors for several games. As an alum of the university and a partner of the firm, I was lucky enough to attend the Rose Bowl with the company. The experience of attending and ultimately winning against an amazing opponent in the company of our friends and partners in a beautiful venue and part of the country was a once-in-a-lifetime experience.”
Significant Milestones
What have been some of your firm’s most significant milestones? Kane cited:
“CIG has had several milestones recently. In May 2024 we raised a significant amount of equity, allowing us to acquire our solar panel manufacturing business CSM. In July 2024, we made some amazing critical hires and grew our organization to include some of the best minds in the renewables space. I think there is a significant company milestone coming up in October of 2024 when we expect to announce a business expansion into the energy space, which will impact the company and the renewables industry in a major way.”
AUM And Other Metrics
When asking Kane about the firm’s assets under management (AUM) and other metrics, he revealed:
“CIG has deployed $130 million of equity this year and has commitments for an additional $400 million. We want to raise an additional $500 million in the coming months and are on track to do so. Combined with the firm’s existing assets and the support of our founders and investors, we have never been in a better spot.”
Industry Focus
What are some of the industries that your firm is focused on? Kane pointed out:
“CIG’s current pipeline of projects includes more than 3 GW of utility-scale solar projects, a US-based manufacturer of solar modules, and various hospitality and residential projects across North America.”
Differentiation From Other Firms
What differentiates your firm from other firms? Kane affirmed:
“CIG has a unique positioning in our industries and has an uncanny ability to bring together capital for projects. While every company says they have ‘built a better mousetrap,’ we think we have been able to attract commitments from investors that would have never considered renewables and commercial real estate through comprehensive de-risking, novel capital structures, and conservative underwriting.”
Challenges Faced
What are some of the challenges you faced while building the firm? Kane acknowledged:
“We are constantly pushing innovation in our deal structures. Recently, we had trouble accommodating an investment from a large European infrastructure investor into one of our utility-scale solar fields – they wanted to invest, but needed a series of complicated questions answered. We had to work together with engineers, research institutions, market participants, and our CIG specialists to collect, interpret, and present the data that would allow the investor to get comfortable. We then worked to present and convince a ratings agency to understand the data and approve our assumptions. The result is a groundbreaking look at the merchant power pricing in electricity markets, which allowed us to secure the investment, and now that data is allowing every other industry participant to develop other renewable assets even faster.”
Future Firm Goals
What are some of your firm’s future goals? Kane concluded:
“CIG is poised to be more successful and larger in very short order. Our business plan at CIG Renewables is to be among the largest owners and operators of utility-scale solar in the US, with several gigawatts of development in the pipeline. We are also working with adjacent energy pursuits focusing on sustainably producing green hydrogen, ammonia, and nitrogen and supporting the massive buildout of high-performance computing/AI. In addition to the renewables pursuits, we have a series of luxury full-service hotels, master-planned communities, and several manufacturing operations to bolster American industry with quality and affordable products.”
