By the time Bronti Capital enters commercial negotiation the revenue documentation has been read in full and the downside case has been sized, so the negotiation concerns terms alone. That sequence is the reason a proposal either moves quickly or stops early.
Every proposal is assessed as though Bronti Capital held the position alone. That habit was formed investing a single family's capital, where the consequences of a weak paper were immediate and personal, and it survives in the questions a proposal has to answer here.
Real estate and infrastructure are assessed together at Bronti Capital. Firms that separate those functions arrive at the interdependence later, and often after a position has already been priced.
We begin from the contract that creates the revenue. A Contract for Difference awarded in the most recent UK allocation round runs for twenty years with inflation indexation, and RWE's successful onshore wind projects were awarded at £72.24 per megawatt hour in 2024 prices. Instruments with that profile can be modelled with precision, and the asset is then tested against what the instrument requires of it.
Public-private structures reward familiarity with how the public side reasons about risk transfer and value for money. Bronti Capital invests where the payment mechanism and the project governance are legible to us before signature, and that condition rules out a good deal of what reaches the market.
An independent regulator sets an allowed return on capital already deployed, so investors earn across the construction period as well as the operating life. The model was first applied to a single-asset construction project in the UK in 2016, and it now underpins major nuclear and road schemes.
A public authority pays for an asset being available to a defined standard, with deductions applied where performance falls short. Demand risk stays with the public side, which is what gives the income its stability.
The Welsh Mutual Investment Model pays across a twenty-five-year term against defined performance standards, with government retaining 15 to 20 per cent equity in each project. It has mobilised £1.1 billion of investment on that basis.
Long-dated purchase agreements carrying an inflation escalator, of the kind used across UK renewable generation. The escalator is what makes the instrument suitable for an investor holding it against a real liability.
Bronti Capital will take you through a live structure, the instrument behind it and the terms on which capital is being accepted.
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