The Ledger
Every statement that passed quotation and attribution checks. Mix any filter with any other: certainty 1/5, debate potential 5/5, or both at once.
why aren't all 28 resolved? a statement only gets an assessment when the public record can support or contradict it. opinions and what-ifs never can, and 0 checkable ones are still open, waiting for their date. predictions held up or didn't; assertions are supported or contradicted. on every card: ▮▮▮▮▮ certainty · ▮▮▮▮▮ debate potential. speakers are clickable
Orum: 80% of climate decarbonization falls between divestment and venture solutions
“So divestment and climate solutions, in my view, deal with the two pillars, but about 80% are going to fall somewhere in between. How do you decarbonize a heavy industry? How do you decarbonize buildings and the built environment? Obviously transportation. And…”
Orum: Tesla accelerated legacy automakers' EV plans by 10 to 20 years
“And then on top of that, there is what Tesla did in the OEM industry overall, which is it effectively brought forward The plans of all the other large automakers by likely 10 or 20 years.”
Orum: Standard 2-and-20 fees deter scaling capital in renewable infrastructure
“The typical fee load applied to that activity is a real deterrent to crowding in large pools of capital. They aren't assets that have the optionality that can really absorb a two in 20 or a one in 20 fee load.”
Orum: 1.5°C climate goal is impossible without offsets and carbon sinks
“So no one that looks at the carbon challenge and the evolution of how do you keep within the Paris agreement one and a half degree framework sees a pathway without using offsets and carbon sinks.”
Orum: Sustainable investing is meaningless unless it influences other asset owners
“In the scheme of things, the truth is it doesn't matter because the scale of capital required is so great that unless you're being influential in either influencing or enabling other asset owners to invest in that way, then you're probably not fulfilling the m…”
Orum: ESG industry deserves cynicism as global emissions rise alongside ESG assets
“I think the ESG industry and complex deserves to be criticized, and one should have some cynicism about it. There's this wonderful chart showing ESG assets going up into the right, and then global emissions going up into the right, and so you do have to ask, w…”
Orum: US climate policy competition will accelerate global deployment but cost more
“If you start to force the level of competition that I think some of the US policy envisions, you will likely see an acceleration across the global landscape, which is interesting. It's counterintuitive. It'll definitely cost more money, by the way.”
Orum: ESG and impact funds undermine their mission with egregious fee loads
“I think the impact space and ESG has done itself a disservice in how it prices its product. So you have these people that are trying to really have exceptional impact, and then they show up to talk to us and their fee load is egregious. And they don't quite un…”
Orum: Generation Proved Sustainability Integrations Enhance Risk-Adjusted Returns
“Over time, firms like Generation proved out or illustrated that you could introduce and integrate sustainability and these broader frameworks into an investment process, and it could be additive to risk adjusted returns.”
Orum: Capricorn Allocates 60% to 70% to Climate Strategies
“About 60 to 70% of our portfolio is oriented towards strategies addressing climate change. About 20% is oriented towards financial inclusion and seeking different ways to get capital to undercapitalize entrepreneurs, businesses, segments of the economy, commun…”
Orum: Early 2000s renewable infrastructure earned very high risk-adjusted returns
“And in our view, those type of opportunities were really mispriced for the risk. It was a new asset class. And I think you were able to do that type of development and earn very high rates of return relative to the risk.”
Orum: Capricorn's Early Mistake Was Not Committing Aggressively to Climate
“And I think early on, we probably weren't as aggressive in going more strongly towards climate and impact and maybe keeping a leg in some of the more traditional segments of the economy.”
Orum: Capricorn Rarely Backs Inexperienced Managers in Climate Seeding
“Very rarely are we dealing with a true emerging manager, if you will. More often than not, I think what's really exciting about what's happening in the world today is you have people with really strong technical skills and investment experience, and they're ma…”
Orum: Public Utility Investing Offers Strong Climate Impact and Return Potential
“Utilities, I think, is a significant part of global emissions, clearly, but within the public markets in particular, it's probably one of the more interesting ways to express climate advocacy and engagement in that it's such a big part of emissions, and I thin…”
Orum: Transitioning Utilities Will Be More Valuable in the Future
“So a lot of that carbon in our portfolio comes from utility companies that are on a pathway to transitioning. If we're right, those companies will be ultimately more valuable in the future because there'll be better position. The cash flows will be capitalized…”
Orum: Private renewable infrastructure yields are likely below Capricorn's cost of capital
“Even in the private side where so much Of renewable infrastructure is priced. It's likely below our cost of capital. It may be more appropriate for pension funds or other large pools.”
Bill Orum: Emerging investment firms fail when abandoning differentiated strategies
“I think where we've had less success than we would have hoped is that things don't go exceedingly well early. People tend to gravitate back towards what's traditional and comfortable. It's always better just to press whatever advantage you think. So be as diff…”
Orum: Distressed clean-tech investing will emerge as a major energy transition opportunity
“This hasn't yet happened in the energy transition, but I think because of what occurred in the last couple of years in the current environment that we're in, I think there's going to be a very interesting opportunity around distressed investing in clean tech, …”
Bill Orum: Reforestation Can Absorb Most Capital Among Carbon Sinks Today
“The market that can absorb the most significant amount of capital today is nature-based afforestation, reforestation.”
Orum: Rare to find a VC firm today without a climate focus
“I think in the venture landscape, it's very rare that you run into any venture capital firm these days that doesn't have some sort of focus on climate, and I think that's usually a pretty strong indicator.”
Bill Orum: Ion Yadigaroglu led Capricorn's early investment in Tesla
“So we started there and Jan led an investment in Tesla.”
Capricorn Allocates 60% to Equities, 20% to Real Assets, 10% Liquid
“We have about 60% of the capital in various forms of equities, public and private, about 20% of the capital in real assets. Those real assets tend to be more contractual, more infrastructure-like, just because of the nature of what we're doing, so not nearly a…”
Orum: Capricorn has backed 25 asset management firms in 15 years
“And so we've backed 25 firms over the last 15 years, a couple per year.”
Orum: Public Companies Account for Roughly 40% of Global Emissions
“I think the number is something like 40% of global emissions are attributable to public companies, so it's material.”
Orum: Capricorn's Portfolio Has One-Third Carbon Intensity of Global Equities
“When we look at our overall portfolio, we have about a third of the carbon intensity of a similar sized global equity portfolio.”
Orum: 70% of Capricorn's portfolio emissions stem from just 20 companies
“What's interesting is that still about 70% of our emissions in our portfolio are attributable to about 20 companies.”
Capricorn focuses on picks-and-shovels infrastructure for nature-based climate solutions
“Nature-based solutions, natural climate solutions , I mean, that is very likely. It has to be part of the solution, and I think it will very likely be a burgeoning area, so we're spending a lot of time on the picks and shovels of it. So looking at project fina…”
Orum: Capricorn was founded to seek high returns through climate impact
“The goal was to build a different type of investment firm that wouldn't just support our clients' capital needs for philanthropy or other purposes, but actually activate the capital while we were managing it. So seek out high rates of return, but do so in such…”