Our core Fund Management business structures, funds and manages energy properties for retail and institutional investors. These energy funds are marketed under the name of Capital City Energy Funds and managed by Avanti Energy Partners, LLC. These energy funds are structured as direct participation programs for accredited investors and distributed through regional Broker-Dealers, Financial Planners, Registered Investment Advisors and Wholesalers of financial service products for the benefit of their clients.
Avanti invests the capital for each energy fund by partnering with successful oil & gas companies that have established histories, excellent track records, and possess the regional expertise to develop and exploit their asset base. We utilize the vast experience of our management team and consultants in the oil & gas exploration, development, drilling, and production areas, to create income-oriented direct participation investment programs.
It has long been recognized that adding direct energy investments to an investment portfolio can help offset market volatility and declines, however there are few direct investment vehicles designed for investors to participate in the income and economic upside of the oil & gas industry. Our funds are designed to meet the need for a true non-market correlated energy based investment.
Investments are selected using a proprietary process anchored in Modern Portfolio Theory that emphasizes diversification to manage risk and enhance consistency of returns. Our discipline targets every portfolio holding to no more than 5% of the total fund’s capital. We also diversify by resource type and geography. As a result each fund is comprised of 20 or more income producing energy properties that may include producing wells, developmental and exploratory drilling, pipelines, acreage, royalties and specialty assets. Although we pursue a conservative risk adverse return, our total annualized return target is 18% to 24%. Our methodology takes into consideration the development completion, time horizons and life expectancies for the various energy properties. The energy properties are then laddered out in stages to create a sustainable long term revenue stream.