© Pacifico

Pacifico: “We Make It Easy To Invest in Renewable Energy”

Access to capital – this is something startup founders know very well – is not always an easy thing. And this also applies when it comes to the development of renewable energies, especially for small and medium-sized project developers. The startup Pacifico, which is based in Grünwald, is taking on this challenge. We spoke with co-founder Martin Siddiqui.

Munich Startup: Who are you and what does Pacifico do? Please introduce yourselves!

Martin Siddiqui, Pacifico: We are Dr. Martin Siddiqui (Co-CEO), 37 years old, German degree in economics equivalent to an MSc from the University of Mannheim. Doctorate (Dr. rer. pol.) from Zeppelin University; formerly at J.P. Morgan in Frankfurt.

And Christoph Strasser (Co-CEO), 30 years old, degree (B.Sc.) in business administration from the University of Mannheim. Master (M.Sc.) in business administration from the University of Mannheim and from the ESSEC Business School; formerly at J.P. Morgan in Frankfurt.

We’ve known each other since working at J.P. Morgan together, which is where we decided to take on the professional challenge of building Pacifico Renewables Yield AG. We became very good friends over the years and our trusting relationship proved to be extremely helpful, especially during the development stage.

Munich Startup: What problem does your startup solve?

Martin Siddiqui: We make investing in renewable energies easy and offer both small and medium-sized project developers a platform to the capital market. Through partnerships with developers, the aim is to “recycle” expensive and scarce development capital faster so it’s possible to invest in new development projects. That is our contribution to accelerating the transition to renewable energy.

Munich Startup: But that’s nothing out of the box!

Martin Siddiqui: We would know if it wasn’t. As far as we know, a company that offers a platform to the capital market and works exclusively with international project developers doesn’t exist yet.

Going public extremely early on

Munich Startup: What have been your three biggest challenges so far?

Martin Siddiqui: 1. Because our business model essentially builds on regularly raising capital, we decided to go public very early on. It was the right step to take, but it was also extremely labor-intensive. Being a listed company so early on is complicated. It involves much more demanding disclosure requirements and we endeavor to set standards in the field of transparent capital market communication.

2. Our first capital increase was during the first lockdown. That made things more difficult. It upset our original schedule and many investors had other things to worry about than our capital increase. In the end, however, we were able to place more shares than originally planned and won over interesting investors for our company.    

3. Team building during corona. Fortunately, we were able to get amazingly talented individuals on board with us. But personal communication was missing, especially for newcomers.

Pacifico took the step of becoming a global platform

Munich Startup: How is business going?

Martin Siddiqui: Well. We just recently completed the acquisition of a 14.1 MW solar park in the Netherlands through profit retention from the cash flow from our operational portfolio. We also signed a sales contract for a 51.8 MW wind park in Poland. Moreover, we recently entered into our fourth partnership with an Australian developer, meaning we’ve taken the step of becoming a global platform and were able to expand our pipeline to 3.1 GW.

Munich Startup: What do you think about Munich as a startup location?

Martin Siddiqui: Our view is nothing but positive. The city is extremely attractive to talented individuals. The proximity to the Technical University of Munich in particular gives us a competitive edge, especially in the field of battery storage systems, which we deal with intensively. Moreover, the Munich startup scene is growing exponentially, offers an exciting network and an attractive place to live with so many options beyond work.

Munich Startup: Risk or security?

Martin Siddiqui: Security. Our business model builds on stable and predictable cash flow from investments in the field of renewable energies.