TRANSACTION

LongReach sourced and structured a growth capital investment from Equinor in MicroPower, a Brazilian storage-as-service company, to join Siemens as a shareholder and industrial partner of the company.

LONGREACH ROLE

Identified MicroPower as a good fit for Equinor’s New Energy investment strategy in Brazil, one of the company’s key growth markets globally. Organized Due Diligence process. Assisted with transaction structuring. Reviewed the business plan. Built a valuation framework.

KEY LESSONS LEARNED

1. Battery storage is becoming an increasingly important piece of the distributed energy value-chain, including in developing markets
2. Storage business models require a detailed grasp of energy market dynamics to achieve attractive commercial returns
3. Micro-grids utilizing solar and storage are a cost-effective solution for industrial companies – before taking into account the climate and sustainability benefits
4. Industrial players are often attractive investment partners as they have a long-term perspective – and can help with industrial client relationships which can be slow and costly for young companies to develop