Former top UBS AG investment banker Jeffrey McDermott and several other Wall Street veterans have launched a boutique advisory firm focused on alternative energy and “cleantech” companies.

The formation of Greentech Capital Advisors LLC represents two of the biggest trends in financial services these days. The New York firm becomes the latest in a legion of new niche firms taking advantage of the Wall Street shakeout and training its sights on fast-growing sectors of the economy.

McDermott told Reuters much of the credit goes to his 14- year-old-son, Dylan, who expressed an interest in following his father into investment banking. As McDermott described what he thought would be an even better opportunity for his son — renewable energy and earth-friendly technologies — they agreed he had described a pretty good business idea.

“I told him climate change is for real, that we’ll use energy differently, that there is more awareness of the environment,” McDermott recalled. “I decided I should look into this myself…”

Though every bank has beefed up coverage of the dynamic green corner of the economy, McDermott said the playing field is fairly uncrowded.

“This is a very new sector. There is no Frank Quattrone, no dominant figures. And as firms retrench, these new sectors get less focus and attention,” he said.

McDermott, who advised large industrial companies as a banker, sees the alternative energy and clean tech space as fertile ground for consolidation and expansion. The industry is also still in its early stages, with most firms having market values of less than $100 million.

“Over the next several years, there will be a lot of capital raising and a lot of M&A,” he said.

I suppose the most positive aspect of this article is recognition of the strength of the Greentech sector. Though the professional climate skeptics – and their openly paid-off associates – will undoubtedly devote a segment of their agitprop to denying [a] the need for such investment and [b] the actual existence of money moving in this direction.

Obviously the dude has a positive track record. Though you have to be concerned with the hows and whys of anyone who successfully climbed the ladder of international finance. Worth keeping an eye on.