Sarah Strachan, an associate director at KPMG, explains the many ways in which supporting a sustainable energy transition as a corporate financier is rewarding
What got you interested in renewable energy?
I qualified with the South African Institute of Chartered Accountants while working for KPMG in Johannesburg. There are a lot of rolling blackouts in South Africa, which makes you realise how we can take energy for granted. This spurred on my passion for the renewable energy sector. After qualifying, I wanted to be more at the heart of change, in terms of global renewable energy sector policies, regulation and capital allocation, directed to sustainable energy sources.
I moved to London in 2013 and joined the BP alternative energy team as the lead accountant for a host of alternative energy businesses. The more I was involved in alternative energy, the more I knew I wanted to be at the forefront of the sector. I then decided to make the transition from financial management to corporate finance, where I could be instrumental in making change.
How did you make the switch to corporate finance?
I enrolled in a Masters in Finance at London Business School (LBS). The qualification helped me to achieve exactly what I hoped it would – a phenomenal network with life-long friends, advanced business and financial skills, and the platform to pivot to a corporate finance role.
In 2018, a fellow LBS student approached me to join KPMG’s energy M&A team in London. I was attracted by the opportunity to support energy transition, as well as by the strength of the team – highly skilled professionals engaged in leading mid-market renewable energy deals.
The team is very diverse, with around 40% female representation. It has strong leadership, with deep energy sector knowledge and M&A experience. A key tool to transition and build a corporate finance career is strong mentorship and support; I have had great mentors – Gavin Quantock [co-head of KPMG UK’s Energy Lead Advisory team] in particular – who have enhanced my career development with guidance and unique deal opportunities.
What is your role now?
As an associate director, I am the day-to-day lead on deals, interfacing with the client and ensuring that they are fully supported from origination to completion of the deal. I have been given fantastic deal opportunities, with nine deals in three years. Each one has shaped my network, skill set and sector understanding.
At the same time, I work closely with senior leadership to support the wider energy M&A and advisory team, which has more than 40 people. I also have responsibility for business development in the UK and global energy market, which is always a wonderful exercise because you meet future clients and leading industry professionals.
What deals would you highlight?
Supporting Octopus Energy on its two capital raises in 2020 was the highlight of my career to date. The KPMG team was the lead financial adviser, working side-by-side with Octopus Energy on its capital raise in May 2020, and on its second seven months later, which valued the group at $2.1bn. It’s a privilege to work alongside a client that is fully engaged in the energy transition.
Both deals were completed during the height of the COVID-19 pandemic, with layered debt and equity, and international investors, which increased the complexity of the transactions. One of my key takeaways from the deals was the strength of teamwork. You learn a lot about people in a pressure-cooker environment and it’s amazing when you cross the finish line together. A deal can only be completed when everyone works together.
What are your future plans?
I’m currently working on some exciting projects across the energy spectrum, which take up most of my day. In the medium term, I will focus on supporting clients in the UK’s energy transition. To reduce climate change and meet net-zero targets, we all need to work together, use technology effectively and encourage innovation to make a change. It’s challenging and rewarding, and the place I want to be.
Strong female leaders have encouraged me at every step along the way and I think it’s essential to give that back. It’s extremely important to get more diverse involvement in the energy sector, and I am actively engaged and open to opportunities to do this.