Victory Hill Capital Group chief executive officer Anthony Catachanas has warned that the sustainable market in developed countries is saturated.
While there is “some structural demand”, he told Money Marketing that emerging markets do not see the same level of capital inflows.
He said: “The majority of the funds that we find in the world are oriented towards either OECD markets or developed markets outright. A lot of flow of capital goes in that direction. “There’s not as much capital flowing into emerging markets, but that is where structural demand is going to come from in the future for energy in general.
“That is where the biggest impact in energy can be had from both an environmental and social standpoint.” According to the International Energy Agency, the world population is set to rise from 7.7bn today to over 9.6bn in 2050.
Catachanas added: “The majority, if not all of that growth comes from emerging markets. “The issue in energy is that the energy market is not the same thing as an economic or financial market. The energy market in a country can be extremely developed, while the economy is less so.
“The return opportunity is unquestionably there, but people are more often than not scared about what they do not know. Our biggest fault is that we want to drive more capital into resolving the problems, but we often shy away from having the courage to drive capitals in the right direction.”