The management of Deacon Harbor has provided financial advisory and analytical services on debt
and equity transactions with a combined investment value of
over one billion dollars. Deacon
Harbor has participated in project and company financings with clients on both sides of a
transaction. For example, the firm has advised tax-based financial investors seeking to deploy
capital on a project level. Conversely, Deacon Harbor has also worked with developers and start-
up companies in their efforts to secure development and project financing from third party
investors. This experience provides Deacon Harbor with a very broad perspective that enables the
firm to add value to its clients.

The firm’s services are individually tailored to meet the needs of each client. Due to the highly
structured nature of project and company financing, pre-packed solutions are not generally
successful. Deacon Harbor works with its clients to develop a targeted plan to maximize realized
value. For investors this may mean achieving a desired rate of return by assessing transactional
risks and developing a structure that best minimizes those risks. For developers our philosophy
means working with a client to identify and correct any potential fatal flaws, from a financing
perspective, in a project before contacting investors, thus enhancing the value of a project.

The firm’s services, which are done on both company and project levels, fall into two broad
categories: advisory and analytical. Indicative services include:

Advisory
     •  Investment Due Diligence
     •  Project Information Memo Preparation
     •  Company Business Plan Preparation
     •  Project and Corporate Capital Raising
     •  Investment Screening Review
     •  Transaction Negotiation and Structuring
     •  Project Financing Structure Advisory Services

Analytical
     •  Modeling of Partnership Accounting (capital accounts, basis, etc.)
     •  Project and Corporate Pro Forma Model Construction
     •  Asset and Company Valuations
     •  Stochastic Analysis
     •  Mark-to-Market Valuation
     •  Financial Model Review and Augmentation

Deacon Harbor’s advisory engagements have included development of short and long-term
business and financing strategies, and preparation of business plans and project information
memoranda, including long-term financial projections. The firm’s advisory experience also includes
structuring and negotiating transactions and due diligence reviews of potential asset investment
opportunities.

Deacon Harbor has a significant amount of experience modeling partnership accounting (e.g.
capital accounts and basis). Partnership issues are important in any asset investment, but are
more important in renewable and alternative energy, where transactions are highly structured
and returns are largely based on tax incentives (i.e. accelerated depreciation and tax credits). The
potential impacts of items such as minimum gain chargeback, stop loss, and negative basis are
extremely important relative to the returns of each partner in a transaction. Deacon Harbor has
helped clients better understand partnership allocation issues and how they can impact both
parties in the transaction.

The firm has constructed many project models for a wide variety of technologies, including wind,
geothermal, biomass, waste-to-energy, and compressed air energy storage. The firm’s experience
also includes review and/or augmentation of existing pro forma models. From high-level project
screening models to very detailed financing models, Deacon Harbor has significant experience. In
addition to project models, the firm has also created numerous company pro formas for use in
business plans and financing documents.

Deacon Harbor has performed numerous analyses incorporating stochastic techniques. There are
many uncertainties surrounding the future financial performance a project or company. Quantifying
those uncertainties, and understanding how they relate to each other and how they affect the
bottom line is extremely important.  Stochastic analysis allows a decision maker to asses the
down-side, and also up-side, exposure with any given decision. Ultimately, it allows for the
identification and mitigation of potential risks, yielding more informed decisions.
Investment Due
Diligence
Deacon Harbor is managing
the financial due diligence for
the U.S. subsidiary of a global
life insurance company on its
tax-based project equity
investments. To date, the
client has made multiple wind
project investments in assets
totaling roughly 290
megawatts. The transactions
required the assessment of
structural risks, review of
developer pro forma models,
ensuring financial model
consistency with debt and
equity documents, and
negotiating and finalizing the
project financial projections.
Project Structuring
For a leading geothermal
developer the firm
constructed a complex project
pro forma model, including a
partnership accounting
module. The model allowed
the company to analyze
different ownership structures
and the impact of raising
money at various points in
the project development
life-cycle. The client was also
able to ascertain the capital
account impacts on potential
partners under different
partnership structures. The
model will help the company
optimize the timing of
additional financing and the
structure that investment will
take.
Negotiation &
Structuring
For a leading international
biodiesel producer, Deacon
Harbor assisted in negotiating
and structuring a
co-development funding
agreement with a large U.S.
private equity fund. This
agreement was put in place to
help the client gain access to
additional capital to be used
for establishing a North
American project
development business.