NewWorld Capital Group

Environmental Products and Services

  • Situation
    • Environmental services play an important role in addressing environmental inefficiencies in the U.S.
    • Environmental Products are those that replaces the function of one or more incumbent products with one that has lower lifecycle environmental impact.
    • Sub-segments of Environmental Products and Services are mostly fragmented; some sub-segments feature growing, low-cyclical demand
    • Commercial scale and sufficient capital are necessary for many of the segment’s business models for Environmental Services
  • Market Opportunities
    • Aggregate market for Environmental Services forecast to grow 3-4% CAGR through 2016 (many segments growing much faster)
    • Market for Environmental Products is growing annually at 3.7% in low carbon and environmental goods
    • Some sub-segments are experiencing higher growth rates of up to 7%, and all have been increasing in the last 5 years, showing ample room for further expansion.
      • ESCO market forecast to grow at 8% CAGR through 2018
      • Environmental sensor and monitoring market forecast to grow at 6-7% CAGR through 2016
      • Environmental Services segment is less incentivized by current regulation and legislation than other segments
    • Any product company can also be a service company
  • NewWorld Investment Focus
    • NewWorld focuses on “backwards compatible” businesses that do not require material change in the downstream product distribution and service system
    • Environmental Products should be just as functional, if not more functional, than their non-sustainable competition;
    • Environmental Product companies who are competitive without having to charge a green premium on their products.
    • Environmental Service companies with consolidation potential
    • Energy services companies (ESCOs)
    • Related information and analytical services, Regulatory compliance services, Green supply chain services