Uncovering actionable deal opportunities for private equity, venture capital, angel investors, and investment bankers by reading the data, not the rumors. Highlighting 10 companies that have a high likelihood of being “in-market” for a transaction.
Pay close attention to the “Keywords of Interest” – these are terms the company is actively searching at 2x – 3x their normal baseline rate.
Previous Predictive Deal Issues:
Week of July 24, 2020 Week of July 17, 2020 Week of June 29, 2020 Week of June 19, 2020Solar Mosaic, Inc.
Oakland, California, United States
Company Summary
Solar Mosaic is a marketplace for users to finance and create solar projects in communities. The company has developed a platform in solar finance by allowing individuals to buy into a collective solar project. Instead of purchasing solar panels, Mosaic allows users to buy into a solar project at a fraction of the cost, and be repaid over time for contributions.
| Key Data Points | |
|---|---|
| Founded | 2009 |
| Headcount | 182 |
| Funding to Date | $749.43M |
| Last Round | 2016 |
| Last Round of Investors | Deutsche Bank |
| Estimated Revenue | $10M |
| CEO | Billy Parish |
Intent to Transact Score
Keywords of Interest
Ancillary Signals
Our Take
Solar Mosaic’s financing platform originates loans for private players from larger financial institutions. It is likely looking for a new line of credit from another major financial institution considering the last debt load was back in 2016. This line of credit will support its general business operations and will likely be larger than the previous round of $250M because of the business’ growth over the last four years. In the potential mandates section, we think that the advisory work in securing debt is the most likely engagement.
Potential Mandates
- For Venture Funds: Potential exit opportunity of a portfolio company that operates under a similar/parallel business model to support the growth of Mosaic
- For I-Bankers: Advisory work in securing debt
- Strategics: Could be open to strategic investment from infrastructure group to improve EPC partnerships and negotiate more favorable loan terms
IQE
Cardiff, Wales, United Kingdom
Company Summary
IQE is a supplier of semiconductor wafers with products that cover a range of applications, supported by an innovative outsourced foundry services portfolio that allows the Group to provide for the wafer needs. IQE integrates the wafers with a variety of renewable energy solutions including solar cells and energy efficiency.
| Key Data Points | |
|---|---|
| Founded | 1988 |
| Headcount | 650 |
| Funding to Date | $112M |
| Last Round | 2017 |
| Last Round of Investors | NA |
| Estimated Revenue | $176M |
| CEO | Dr. Andrew Nelson |
Intent to Transact Score
Keywords of Interest
Ancillary Signals
Our Take
LSE:IQE needs cash and its likely that an institutional investor will supply it. Although the company claims to be having a profitable year, suffering the blow from 2019 will have a long term impact into 2021. There are still some solid opportunities for the group that will help it recover: 5G revolution and the solid growth in solar. If the team can execute valuable partnerships in these spaces, then the group will be in a strong position to take on some debt rather than selling post-IPO equity.
Potential Mandates
- For Venture Funds: Potential exit of a portfolio company that could be a strategic investment for IQE
- For I-Bankers: Advisory work in securing debt capital for IQE
- Strategics: A strategic partnership to advance 5G and solar operations
Braemar Energy Ventures
New York, New York, United States
Company Summary
Braemar Energy Ventures is a VC firm that focuses exclusively on technology and communications opportunities in the energy sector. The firm makes early, ahead-of-the-curve bets in energy technology companies.
| Key Data Points | |
|---|---|
| Founded | 2003 |
| Headcount | 11 |
| Investment Amounts | $10bn+ |
| Last Investment | General Fusion (Series E – 2019) |
| Last Investment Amount | $65M |
| Number of Exits | 12 |
| CEO | Neil S. Suslak |
Intent to Transact Score
Keywords of Interest
Ancillary Signals
Our Take
Based on the signals, Braemar is likely looking to exit its investments. The group likely has little to no dry powder and will either need to raise a new fund or have successful exits to finance new investments. They have poured a lot of money into and have been investing for quite a long time in Chargepoint and Brightvolt and could be looking to exit these companies.
Potential Mandates
- For Venture Funds: Potential exit of portfolio company
- For I-Bankers: Potential advisory in the sell of a portfolio company or the buy of a portfolio company for a strategic buyer/PE firm
- Strategics: Could be open to raising new fund with strategic LPs
Solar Industries, Inc.
Tucson, Arizona, United States
Company Summary
Solar Industries is a building material company offering aluminium and vinyl windows. The company creates custom skylights with solar-integrated solutions in order to provide the best lighting to customers.
| Key Data Points | |
|---|---|
| Founded | 1976 |
| Headcount | 110 |
| Funding to Date | $13M |
| Last Round | 2012 |
| Last Round of Investors | Oman India Joint Investment Fund |
| Estimated Revenue | $170M |
| CFO | Aaron Thomas |
Intent to Transact Score
Keywords of Interest
Ancillary Signals
Our Take
Solar Industries Inc. is actually a part of group of companies with varying levels of ownership by Donald Medoff that passed away in 2018. The business is primarily focused on manufacturing of residential finished goods with a heavy focus on energy efficient skylights, specialty glass and frames.
In addition, the company has/or had interests in commercial lines of business, trucking, manufacturing and strong dealer network with what appears to be a consolidated supply chain. Existing relationships with Great Western Bank, Hyg Financial Services, but could well be in need of additional lines of working capital or potential take out of old equity partner.Potential Mandates
- For I-Bankers: Potential multi-pronged effort to restructure balance sheet to position the company for growth with the right combination of debt and equity with the potential for a buy-side to expand it’s share of wallet
- Strategics: Company has very strong footprint in Southwest and pairing with solar panel installation could be smart move, but the business is more likely a fit for a larger company in similar lines of business but lacking presence in Southwest
- PE Firms: potential need for dividend recap or liquidity to fund company growth, and / or acquisitions
- Alternative credit funds: most likely fit. Unitraunche + working capital lines with some upside could be what the company needs. Appears to have asset base, but maybe in the “no man’s land” of not enough assets for ABL, not enough cash flow for senior, and neither one would subordinate to the other.
Hoosier Energy
Bloomington, Indiana, United States
Company Summary
Hoosier Energy is a generation and transmission electric cooperative providing wholesale power and services to member distribution cooperatives. Their portfolio includes coal, natural gas and renewable energy resources that deliver power through a nearly 1,700-mile transmission network.
| Key Data Points | |
|---|---|
| Founded | 1949 |
| Headcount | 145 |
| Funding to Date | N/A |
| Last Round | N/A |
| Last Round of Investors | N/A |
| Estimated Revenue | $5M |
| CEO | Donna Walker |
Intent to Transact Score
Keywords of Interest
Ancillary Signals
Our Take
Hoosier is going green and they are likely looking to liquidate their coal assets. A valuation firm will likely be engaged to value the coal assets before sell. They may be seeking investors to buy these retiring assets, but not likely a VC firm.
Hoosier could be reaching out to VCs to build an expert network. Considering how coal heavy the portfolio is, the management team will have to act quickly and accurately to meet its 10 year goals. Bringing in new board members from VC shops could be a strategy to guide the overall thesis of building a gas and renewables focused portfolio of power generating assets.Potential Mandates
- For Venture Funds: VC partners to join the advisory board of Hoosier
- For I-Bankers/Valuation shops: Valuation services and potential advisory in selling coal assets or buying/financing renewable/gas assets
- Strategics: Could be open to a strategic public/private partnership to develop a renewable, reliable, cost-effective grid for the local area of Bloomington
