A Switzerland-based investor has backed a deal to recapitalise its Africa-focused energy portfolio company.
Persistent Energy Capital has backed the $7.3 million recapitalisation SolarWorks!, structured as a mixture of $5.3 million equity and $2 million debt.
The deal includes debt conversion to equity, and the write-off and extension of maturity of a total of $8.5 million of SolarWorks!’s debt.
Investors in the equity tranche include Persistent and Portugal-based energy company, Energias de Portugal (EDP), which is backing the deal as a strategic player. Persistent and EDP are both backing SolarWorks! As existing investors.
The transaction is leveraged by $2 million debt from Social Investment Managers & Advisors (SIMA) Funds. SIMA Funds is backing the company as a new player.
SIMA Funds is structuring the deal through the Energy Access Relief Fund (EARF), which is targeting $84 million at final close.
“SolarWorks! is a great company that has suffered setbacks out of its control since 2019. The recapitalization was a necessary solution to restore its health and preserve maximum value for all investors and the communities it serves,’’ said Chris Aidun, co-founder and partner at Persistent. ‘’All stakeholders recognized this, which is what made the recapitalization possible. The company is now in a position where it can grow and expand its footprint across Southern Africa.”
Persistent Energy first backed SolarWorks! In 2018, investing in the company alongside EDP.
Headquartered in Netherlands, Rotterdam, SolarWorks! manufactures and distributes solar products for consumers across Southern Africa.
Deal Card
| Deal Name | SolarWorks! (2023) |
| PE Investors in Deal | Persistent |
| Other Investors | EDP |
| Deal Month | May |
| Deal Year | 2023 |
| Deal Data ID | Available shortly |
| Portfolio Company Name | SolarWorks! |
| Primary Sector | Energy |
| Sub-Sectors | Renewable energy |
| Country Headquarters | Netherlands |
| Debt Investors | SIMA Funds |
| Investing Fund(s) | Energy Access Relief Fund (EARF) |
| Individual Investors | n/d |
| Investor Amounts | EDP (n/d), Persistent (n/d), SIMA Funds ($2m) |
| Region | Southern Africa |
| Deal Size (Base Currency) | $7.3m |
| Deal Size (cUSD) | $7.3m |
| Deal Class | Small-Cap (Less than $20m) |
| Deal Stage | Growth-Stage/Expansion |
| Deal Structure | Debt to Equity Conversion |
| Aggregate Stake Size | n/d |
| Seller Type(s) | n/d |
| Sellers & Stakes | n/d |
| Use of Funds | Write-off and extension of maturity of a total of $8.5 million of SolarWorks!’s debt. |
| Expansion Plans | n/d |
| Key People in Deal | Martim Salgado, Head of Social Impact Coordination Office (EDP), Chris Aidun, Co-Founder and Partner (Persistent) |
| Deal Advisors | Bespoke request |
| Previous PE Deals | Bespoke request |
| Deal Advisory Details | Bespoke request |
| Data Status | Submitted |
Source: Deal Book Africa
