Leyline Growth Capital Solution: Giving Emerging Renewable Energy Developers the Capital to Grow Their Business

One of Leyline Renewable Capital's most popular financial products for clean energy developers is Leyline Growth Capital. The Growth Capital financial product provides financing for startup companies that lack assets or cash flow, but have already successfully completed several rounds of equity fundraising and/or have operational history from previous endeavors. This financing offers a fast way for newly formed developers with a seasoned team to get cash, acquire capital assets, and reach business milestones more quickly.

The key differentiating factor between Leyline Growth Capital and venture capital is that venture capital takes a stake in a company in exchange for providing capital, whereas our debt is paid back over time with an agreed-upon interest rate. When the project is gone, the lender (i.e., Leyline) completely steps out of the picture.

Leyline Growth Capital
There are several features of this type of financing that make it unique:

  1. Leyline Growth Capital provides an early loan for seasoned developers looking to finance a new idea.
  1. Loans may be up to $10 million, and the debt is typically short term (up to three years). The financing instrument is typically used for growth capital or equipment financing that is secured from the assets themselves.
  1. Borrowers are not typically limited in the way they use the loan; it can be used to finance growth, fund acquisitions, or to pay for unexpected costs.

Growth Capital Case Study: Momentum Energy Storage Partners
In February 2021, Leyline Renewable Capital provided Growth Capital financing for Momentum Energy Storage Partners, an energy storage developer based in Columbus, Ohio. Leyline's funding will facilitate the development of 2 GW of stand-alone battery energy storage and solar, plus solar projects representing $2 billion in capital investments across the United States.

Before an energy storage project gets launched, it requires land contracts, permits, interconnection agreements, and other preparations. The leadership at Momentum has deep technical expertise in the energy storage space. Their leaders' skills and background, combined with Leyline's capital and renewable energy development knowledge, will allow Momentum to scale its business.

In particular, Leyline Growth Capital financial product will fund the activities that occur before Momentum receives construction financing from long-term investors. Momentum will package projects with the necessary performance guarantees, revenue contracts, and long-term operations and maintenance (O&M) through its partner networks.

To learn about what we consider when investing in pre-construction capital, visit our website's Investment Criteria page.

Get in Touch With Leyline
If you are a renewable energy developer or an EPC who would like to know more about how Leyline can provide the capital needed to take your business to the next step, contact us at growthcapital@leylinecapital.com.

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