Highview Power — Large Scale, Long Duration Storage Leader

Case Study

£35m strategic investment and industrial cooperation agreement from

Transformational Event for Highview Power

£35m Lead Investor with two Board seats, industrial cooperation and licensing agreement to expand Highview technology to key global markets

Provides capital to support Highview’s project development business model for large scale storage applications — accessing $20+ billion market for storage solutions around grid-scale transmission services and energy-shifting for large-scale renewables

Financing round expected to be increased with further investment from major investors in the coming months

LongReach Involvement

Comprehensive strategic engagement with Highview over 12 months ➢ Refine strategy and business model, develop business plan, organize investor outreach and due diligence and negotiate investment and related terms with SHI (and other potential investors)

Key Highlights

Huge leap forward for the business — 7x valuation uplift

Multi-geography industrial partnership — Global leadership in large-scale storage

Strong team with significant experience — capturing a leadership position

Details

“One of the biggest barriers to a carbon-free future has been the ability of renewables to perform as reliably as, and as cost-effectively as traditional fuel sources. Highview Power’s long-duration energy storage technology not only solves the problems that enable dispatchable renewables but will be a catalyst in bringing the energy transition forward.”

Tomas Harju-Jeanty, CEO of Sumitomo SHI FW

Highview Power — Transaction Overview and Lessons Learned

The Company

Highview Power is a leNling global provider of large-scale, long duration energy storage solutions in the UK, the US, Germany, Chile and the Middle East

Highview aims to develop projects in-house and also supply its technology to other power plant developers

New CEO, Javier Cavada (ex Wartsilla), has been a catalyst for building a new organization with a stronger commercial focus

The Transaction

£35m investment secured from Sumitomo Heavy Industry as lead investor

 First-time fundraising from institutional / corporate investors

Valuation uplift of 7x previous funding round

Governance shared between existing family offices investors and new investors

Targeted outreach to leading industrial, energy, infrastructure, and service players —bringing something more than money

Strong equity story and business plan — showing a major opportunity over next 3-5 years

Significant investor education on technology, business model and markets

Source: comp, information, MC analysis.

Key Lessons

A unique story (large-scale, long duration) requires very thoughtful articulation of business model, market opportunity, strategy. Positioning is critical

Business model transformation can be an effective catalyst for new money and a significantly improved valuation — but need to show clear evidence of how it will deliver results

“Lead investor” construct allows for possible of strong support — or even potential acquisition —while retaining near-term independence

Energy markets, especially solar, are more global — investors are more willing to apply lessons learned, experiences gained to new markets