“When Arroyo underwrites a deal, we look at credit, counterparties and contracts to ensure any downside is protected. In addition, we identify three to five things within the commercial strategy which truly defines an Arroyo deal.”
– Chuck Jordan
Since 2003, the Arroyo team has consistently implemented a strategy focused on downside protection and upside value creation. We aim to grow the amount and term of the gross margins within our investment companies.
Arroyo uses a variety of business strategies based on its core areas of expertise:
Commodity supply agreements and related commodity markets
Ability to transact on a physical basis with both utility and corporate customers seeking security of supply via long term off-take agreements
In-depth knowledge of market design and regulation
The team’s underwriting focus is on investments with a combination of the following characteristics: predictable cash flows; assets with reliable operating history; favorable operating characteristics and position relative to demand; and conservative capital structures. Arroyo implements a hands-on management style and seeks to make controlling investments without the use of operating partners.
Arroyo pursues investments in the U.S., Mexico and Chile.
“We’re driven to be a leader in this space. We not only have an active hands on approach, but we’re also focused on creating win-win opportunities with our customers.”