Our Investment Process
The Rice New Energy Fund (RNEF) employs a rigorous investment process to identify and capitalize on opportunities in the energy transition. Our student-led teams work collaboratively across defined verticals to ensure comprehensive coverage and informed decision-making.
Our six key verticals drive the energy transition and broader push for sustainability. They provide a thematic focus, enabling us to identify high-potential investments in publicly traded companies advancing sustainability and decarbonization.
To fit our mandate, a company must fulfill the following criteria:
Traded on a public exchange
Operate in the industries outlined below
Focused on driving broader sustainability themes (e.g., energy transition, circular economy, decarbonization) through its products and services
At least a quarter of projected overall revenue, or EBITDA, should be generated from products and services identified in criterion three
Transportation
Battery Electric Vehicles
eVTOL
Charging Infrastructure
Auto OEMs
Parts Manufacturers
Battery Technology
Metals & Mining
~65 Companies
Clean Fuels & Hydrogen
RNG
Biodiesel
Ethanol
Electrolyzer
Fuel Cell
Industrial Gas
~35 Companies
Power
Engineering & Construction
Residential Solar
Solar OEMs
Wind OEMs
Power Generation & Storage
Geothermal
Nuclear Technology & Services
IPPs
Utilities
Energy Storage
Industry
Circular Economy
Plastics Recycling
CCUS
Materials & Chemicals
Waste Management
~30 Companies
Sustainability Enablers
Diversified Industrials
Agriculture & Food
Energy Efficiency
~30 Companies
Total Companies: 250+
RNEF’s investment process combines deep industry research with rigorous analysis and collaborative decision-making. Each semester, our student-led teams systematically evaluate opportunities across our six verticals, ensuring alignment with our sustainability-driven mandate. From sourcing potential investments to monitoring active positions, every step of our process is guided by a commitment to finding innovative companies that lead the energy transition while delivering strong returns.
Sourcing
Industry Primers (3 Weeks)
At the start of each semester, every coverage group picks one industry to focus on
Analysts research the industry and compile secondary data from rich sources (e.g., equity research and academic databases)
Emphasis is placed on finding unique ways to gain exposure to the industry CAGRs and trends
Renewables Infra & Equipment
~50 Companies
Due Diligence
Reading & Elimination (4 Weeks)
Based on the industry map built in sourcing, analysts narrow down on finding feasible opportunities through an internal screening process
If a company passes the screening process, analysts start building their thesis and filling up RNEF model
~40 Companies
Pitch Creation (3 Weeks)
Once comfortable with valuation of a given company, analysts develop an event path to help with hypothesis testing and future tracking
Engineering and data team is pulled in to help provide diverse perspective
Analysts create and assign probabilities to bear and base case scenario
Investment Committee (2 Weeks)
No obligation to pitch a company as a buy after pitch creation. Finding the truth is more important than manipulating numbers
Senior analysts pitch long while junior analysts focus on bear case
After first IC meeting, rejected deal teams help vet remaining potential investments
FID is made at second iC meeting
Monitoring & Exit
All Hands Effort (Daily)
Maximum of three assigned investments per vertical
RNEF models used to update earnings and track event path
Data team and PM monitor portfolio level contributions
All members share relevant news and intel on dedicated Teams channel
Conduct position review in the case of thesis drift
Update internal memos after exit