V3 Commodities Group
Capital and risk management services to retail energy providers.
| Date | Investors | Amount | Round |
|---|---|---|---|
* | $50.0m | Early VC | |
| Total Funding | 000k | ||
Related Content
V3 Commodities Group, LLC was established in May 2016 by J. Scott Perry, Paul Hamilton, and Walker Mygatt. The founders brought together extensive experience in the energy sector; Perry and Hamilton were founding members of VMAC LLC and Vantage Commodities, specializing in structured energy finance, while Mygatt contributed leadership experience from the power sector at Constellation.
The company operates in the deregulated retail power and natural gas sector across North America, serving retail energy providers (REPs) and owners of generation and gas production. V3's business model is centered on providing comprehensive capital and risk management services. This includes offering trade finance capital, working capital facilities, and support for collateral postings. Additionally, the firm supplies physical power and natural gas, along with associated credit support and operational assistance. Revenue is generated by providing these integrated financial and commodity supply solutions to their clients, which allows the retailers to focus on marketing and customer acquisition.
V3's core services are designed to address the evolving capital and supply requirements of the energy market. The company provides trade credit, working capital facilities, physical electricity and natural gas supply, risk management, and natural gas logistics. They also offer pricing, scheduling, and M&A services related to the acquisition and disposition of retail sector assets. A key aspect of their financial offering is a borrowing base approach that credits clients for cash, receivables, inventory, and the forward value of customer contracts. This model provides clients with enhanced liquidity and flexibility. Since its inception, V3 has secured significant funding, including a $50 million round in 2017 led by Colbeck Capital Management, to support its wholesale energy supply business and provide capital to REPs.
Keywords: energy finance, commodities trading, retail energy providers, natural gas supply, electricity supply, risk management services, structured energy finance, wholesale energy, deregulated energy markets, power marketing, trade finance, working capital, asset acquisition, commodity risk, energy logistics, physical power, credit facilities, energy capital, North American energy, REP financing