Weather consultant Weather Risk Advisory has closed because of a lack of cash. "It was a cash shortage," said Peter Brewer, founder and ceo in Cambridge, U.K. He explained that the consultancy had a long-term business plan to raise GBP3 million when it started in September 1999 and had only been able to raise GBP1 million because of the harsh economic climate for venture capital funding in a nascent market. A broker said the consultant was ahead of its time in attempting to run a business dedicated to the weather market.
Brewer plans to join another firm to set up a weather derivatives brokering or trading operation and is currently in discussions with several houses, he said, declining to name them. He expects to start his new job at the beginning of the year and be up and running after another six months. As a result of the consultant closing its doors, Jürgen Gaiser-Porter, head of research at Weather Risk Advisory in Cambridge, joined Enron's weather derivatives desk last Monday, with responsibility for analytical and quantitative trade support. He reports to Paul Murray, European head of weather risk management in London. Gaiser-Porter referred calls to Andrew Morrison, spokesman in London, who confirmed the move.
