INFRASTRUCTURE

Investment Platforms / Operators focused on developing infrastructure projects in Emerging Markets where we have identified a great opportunity to develop infrastructure. Our infrastructure verticals focus on both the energy and the water sectors. Our platforms have teams with extensive experience in each of the sectors in which we operate as well as strategic partnerships with national and multinational companies to carry out a good execution of our projects.

Lexington Water Lexington Midstream Lexington Energy Lexington Renewables

Opportunity

Lexington Water found that Latin America and the Caribbean have abundant water resources, but they have poor infrastructure. These assets and resources play a strategic role in regional socio-economic development and job creation. The availability of water in Mexico has decreased from 18,035 m3 / inhabitant / year in 1950 to 3,982 m3 in 2015; this according to the World Bank.

Approximately 76% of the water is used in agriculture, but inefficient use of water and competition between water users is generating conflicts. Mexico is a predominantly urban nation with 80% of its population living in urban settlements (approximately 95 million inhabitants). Urban and rural water security is an important priority for all population and economic sectors.

Impact Investing | “ESG”

Our planet faces enormous economic, social and environmental challenges. To combat them, the UN’s Sustainable Development Goals (SDGs) define global priorities and aspirations for 2030. These goals represent an unprecedented opportunity to eliminate poverty. extreme and put the world on a sustainable path.

Water is considered a multi-impact investment, as it affects the microclimate, the food supply, the industrial chain, health, productivity, and the environment in general. A study by the World Health Organization (WHO) found that the global economic return on spending on sanitation is USD$5.5 per USD invested. Our investment decisions include considerations regarding the impact on the UN SDGs.

Main objectives of the UN Sustainable Development Agenda.

Investment Thesis

Lexington Water is an Investment Platform to develop multiple projects, both greenfield and brownfield, such as: desalination plants, water treatment, wastewater treatment and reuse, water cycle management solutions, aqueducts, distribution network management, and advanced solutions like Smart Water and Smart Meters. We have partnered with Veolia and Blukey to ensure excellent operation and maintenance of the projects.

Opportunity

Lexington Midstream is a Mexican energy company focused on the development and acquisition of Midstream Assets such as: Storage and Transportation Terminals (barge, railroad, truck and pipeline). The team is made up of a group of experts in finance and investment in the energy sector, import and commercialization of hydrocarbons.

Our company has developed strong strategic alliances with commercial companies in the United States to achieve the most competitive prices and with the main consulting firms in Mexico to help in the development process, from feasibility studies to permits, EPC, technology and operation of the terminals.

After more than seven decades under a hydrocarbon industry model closed to private investment in almost the entire value chain, Mexico began to implement profound changes since the Energy Reform was presented on December 20, 2013. The main objective is promote competition within the sector, develop the necessary infrastructure to allow the complete supply of hydrocarbons, advance the sustainability of the industry, as well as take advantage of energy resources and maximize profits. In this sense, the regulation of the CRE for fuel storage has focused on laying the foundations to encourage private participation, since before the presentation of the Energy Reform, PEMEX (Compañía Nacional de Petróleo de México) was the only participant in fuel storage activities.

Currently Mexico has 2-5 days of storage, which represents a great opportunity for the development of infrastructure in the country.

Impact Investing | “ESG”

Lexington Midstream follows principles of environmental and social responsibility (Environmental, Social & Governance “ESG”) when making investments and monitoring companies as well as the implementation of Principles of Responsible Investment (PRI) and Sustainable Development Goals (UN SDG) 2030. These investment criteria help us reduce risks and improve financial performance; seeking to add value, have a positive impact on the planet and exceed the expectations of our stakeholders.

Main objectives of the UN Sustainable Development Agenda.

Investment Thesis

We are primarily focused on the development and acquisition of Hydrocarbon Storage Terminals within Mexico.

Opportunity

After more than seven decades under a hydrocarbon industry model closed to private investment in almost the entire value chain, Mexico began to implement profound changes since the Energy Reform was presented on December 20, 2013. The main objective was promote competition within the sector, develop the necessary infrastructure to allow the complete supply of hydrocarbons and advance the sustainability of the industry. The regulation allows the importation and commercialization of hydrocarbons to Mexico.

Impact Investing | “ESG”

Lexington Energy follows principles of environmental and social responsibility (Environmental, Social & Governance “ESG”) throughout the value chain in the import and commercialization of hydrocarbons. We are aligned with the Principles of Responsible Investment (PRI) and Sustainable Development Goals (SDG) of the UN 2030. These criteria help us reduce risks and improve financial performance; seeking to add value, have a positive impact on the planet and exceed the expectations of our stakeholders.

Main objectives of the UN Sustainable Development Agenda.

Investment Thesis

Lexington Energy is the commercial arm of Lexington Midstream and is a company focused on the import and commercialization of hydrocarbons such as ULSD, Gasoline, Jet Fuel and other fuels.

The company has developed strong alliances with refineries and commercial companies in the United States to achieve the most competitive prices. We recently signed an alliance with Biosolmex, a leading company in Mexico focused on the importation and commercialization of hydrocarbons in Mexico.

Opportunity

Over the next 20 years it will take more than USD$50 trillion in cumulative capital expenditures on power supply and energy efficiency to put the world on a path consistent with a 2℃ rise in temperature; the maximum accepted limit to prevent catastrophic climate change. This represents roughly the equivalent of the GDP of the entire OECD area.

As the world’s population grows, it is necessary to provide more energy to heat and light homes, as well as to boost the economy while reducing greenhouse gas emissions.

Similarly, there is a growing trend worldwide to adopt factors that consider the Environmental, Social and Governance impact both on Investors with a responsible perspective, as well as companies aligning their corporate strategies to consider these parameters and the Sustainable Development Goals of the companies. United Nations such as: Affordable and Clean Energy, Climate Action, Sustainable Cities and Communities.

Derived from this, a large number of companies worldwide are increasingly seeking that their energy consumption comes from clean sources, making their consumption more efficient and seeking to be carbon neutral.

Impact Investing | “ESG”

We incorporate Responsible Investment Principles in our investment decisions in order to reduce risks and improve financial performance, seeking to add value and exceed the expectations of our stakeholders.

Throughout the investment life cycle, Lexington Renewables is aligned with the 2030 United Nations Sustainable Development Goals (SDGs), as well as specific impact indicators according to our sector.

Main objectives of the UN Sustainable Development Agenda.

Investment Thesis

Lexington Renewables is a platform focused on Renewable Energy Projects and Assets and Energy Solutions. We invest in green energy infrastructure and focus on all stages of the project life cycle: development, construction and operation, project optimization, definition of interconnection, structuring and PPA financing.

The vehicle focuses on the construction and operation of wind and solar facilities in the Americas, as well as strategic projects in Europe.

Contact:

Gustavo Castellanos

gustavo.castellanos@lexingtoncapital.mx