Capital strategy
Capital strategy: matching the opportunity to the right capital
Before any investor is approached, establish which investors the opportunity fits, which capital type suits its stage and risk, and how that investor will read the proposed structure.
Why it matters
The right opportunity, put to the wrong investor, still fails.
Capital is not one market. An infrastructure fund, a family office, a growth equity fund and a private credit lender can look at the same opportunity and reach four different conclusions, because each has a different mandate, return target, risk appetite and hold period.
Capital strategy is the work of deciding, before the first approach, which of those investors the opportunity is for, and presenting it in the terms that investor uses. We identify the investor profile, the capital types that fit the opportunity's stage and cash flows, and how investors are likely to view the structure you propose.
The decisions on structure and terms are yours, taken with your corporate finance, legal and tax advisers. Our contribution is the investor's perspective, applied early enough to change the outcome.
Considerations
The six questions that decide which capital fits.
Stage and risk
Development risk, construction risk and operational risk attract different investors at different costs of capital. An opportunity pitched to the wrong risk appetite is declined regardless of quality.
Cash flow profile
Contracted, regulated, merchant or growth revenues determine whether debt is available, how much, and at what equity return.
Size and timing
The size of the requirement decides which investors can lead it, and the timetable decides which can move fast enough.
Control and governance
Whether you are prepared to cede board seats, vetoes or majority control changes the investor universe materially.
Hold period and exit
Infrastructure funds may hold for decades; growth equity expects an exit in years. The capital must match the plan.
Existing capital
Prior rounds, shareholder loans, options and debt all shape what a new investor can be offered.
Reference
Capital by stage
A simplified view of how capital typically changes as a project or company matures. Every opportunity is different; this is where the conversation starts.
| Stage | Typical capital | Typical providers | What they need to see |
|---|---|---|---|
| Early development | Development equity, joint venture capital | Specialist development investors, strategic investors, family offices | Site, a credible route to consent and grid, a team that has done it before |
| Consented, ready to build | Construction equity, mezzanine, development debt | Infrastructure funds, private equity, strategic investors | Consents, grid, EPC pricing, revenue route, a bankable model |
| Construction | Project finance, construction facilities, equity | Banks, institutional lenders, infrastructure funds | Contracts, completion risk allocation, lender due diligence |
| Operational | Refinancing, core equity, holdco debt | Core infrastructure funds, pension and insurance capital, private credit | Operating history, availability, contracted or regulated revenues |
| Growth company | Growth equity, venture debt, private credit | Growth and private equity funds, family offices, strategic investors | Revenue quality, unit economics, management depth, route to exit |
What we provide
A defined investor target, and a case written for it.
- A target investor profile: category, ticket size, stage and geography
- The capital types that fit, and those that do not, with reasons
- How the target investor is likely to view the proposed structure and valuation
- Positioning of the investment case in the target investor's terms
- Sequencing: which capital to approach first, and what each round needs to evidence
- A shortlist of matched investors where the opportunity is ready for introduction
Find out what an investor will see before approaching the market.
The Investor Readiness Review is a fixed fee assessment of your opportunity, written from the investor side of the table. You receive a scored report, the issues most likely to stop an investor, and the order in which to address them.