Most businesses approach investor or lender conversations reactively, often after an opportunity (or need) has already arisen, putting them at a disadvantage. Tailwater Advisors takes the stance that "capital readiness" is a proactive state, not a last-minute scramble.
When Big Horn Renewables needed to secure project funding, they turned to us to help them secure initial funding and establish the foundation for future capital raises.
The Challenge:
Big Horn Renewables sought $175M in capital to fund an initial renewable natural gas development project and needed an experienced financial architect to create and manage detailed financial models as new development projects were identified.
Leadership needed access to reliable models that provided up-to-date insights into project economics in order to engage and communicate effectively with external capital and strategic partners. Every capital conversation started from a position of ambiguity.
Big Horn turned to Tailwater Advisors to develop an action plan to prepare for investor meetings and a successful capital raise.
The Solution:
Drawing on our experience across angel, VC, private equity, and institutional investing, Tailwater Advisors evaluated the key factors investors and lenders look at – financial statement quality, growth trajectory, management team, market position, use of proceeds clarity, and more. Our experience on both sides of the table enabled us to develop a sequenced plan of action and then executed it in collaboration with Big Horn leadership.
Stepped in to support capital fundraising and quickly assumed responsibility for all finance and accounting functions.
Built financial reporting infrastructure from the ground up. This effort included the production of:
a. Financial Statements & Reporting
b. Capital Structure & Cap Table
c. Forecasts & Scenarios
d. Data Room & Documentation
e. Developed forecasting models tied to project milestones and capital deployment timelinesLed governance reform by developing and securing member approval of a revised operating agreement that established a Board of Members.
Worked across senior leadership and external stakeholders to advance projects through financing and approval stages.
Helped to secure the initial Joint Development Agreement for the development project, which could then be applied to other projects as development candidates.
Results:
Tailwater Advisors helped Big Horn secure initial funding for its initial project and established the foundation for follow-on investments.
Financial infrastructure established for the capital raise.
Successfully closed on an initial $175M capital raise.
Helped to secure the initial Joint Development Agreement for the development project, which could then be applied to other projects presented as development candidates.
The full development portfolio in total exceeded $1 billion.
Board of Members governance structure implemented to improve accountability and credibility with external parties.
Company positioned with the financial foundation and strategic partnerships required to move projects toward development and external capital engagement.
Conclusion:
Capital readiness is achievable with the right preparation, and Tailwater's Capital Readiness & Investor Preparation service can help you prepare for a successful capital raise.
