Most electric generation assets typically are capital intensive, requiring significant initial investment and, very often, considerable ongoing expenditures. Electric power producers generate revenues, earnings and returns by selling the electricity they produce into the power grid, or in some cases directly to end users, at values greater than the combined cost of feedstock and processing.

At present, most major electricity markets are either emerging from their first down-cycle since deregulation or are peaking at the top of a boom cycle. Riverstone believes that this situation, combined with ongoing regulatory divestitures, corporate mergers and acquisition activity and industry financial restructuring, will provide ample opportunities to purchase quality generation assets at value with attractive returns.