SYNOPSIS (NOV-2022)

Alexa Capital acted as exclusive financial advisor to CF Pathways on a capital raise to support the company's accelerated growth including the development of innovative software and data capabilities underpinning its energy transition offering.

The CF Pathways platform provides net-zero solutions and sustainable energy supply to over 5,000 large customers across Europe and the UK as they navigate the energy transition. The company achieved £3 billion of revenue in 2021.

Through its CF Partners unit, the company designs, executes and delivers comprehensive risk management solutions across a broad range of carbon, energy and sustainability markets for large, energy-intensive customers. Through its Brook Green Supply unit, the company provides green power and gas to large industrial & commercial customers as well as delivering capabilities to manage renewable power purchase agreements, demand-side response, asset optimisation plus services specific to electric vehicle charging networks.

Demand for CF Pathways' services is accelerating as a result of the urgent need for corporates to manage and mitigate their exposure to energy prices in a dynamic and volatile market. Since inception, the company has traded over 2.5 billion carbon credits in both the compliance and voluntary markets, provides risk management solutions in the power, gas, and oil markets, and currently has a contract book of c.13 TWh of energy supply.

Ara Partners is a private equity and infrastructure firm which specializes in industrial decarbonization investments. It operates from offices in Houston, Boston and Dublin, Ireland.

ALEXA CAPITAL’S ROLE

In advising on the first institutional capital round for CF Pathways, Alexa Capital led all phases of the process, from preparation and capital structure analysis to market engagement (across debt and equity sources) to negotiation of terms and project management through completion:

• Articulation and refinement of strategic business positioning and financial plan
• Analysis of targeted capital structure across equity, debt, and hybrid instruments to achieve optimal cost and functionality – with consideration for sourcing capital from both private and public markets
• Preparation of marketing materials, including business plan, financial model and management presentations
• Building the book of demand and creating financing optionality across diverse pools of capital including strategics, equity investors, credit funds and  commercial & investment banking institutions
• Management of the due diligence process with multiple parties through completion

The transaction highlights the value of Alexa Capital’s expertise in the energy transition value chain, ability to articulate investment fundamentals for a new category-leading company, extensive investor network engagement and execution capabilities, maintaining competitive alternatives throughout the process.

MARKET IMPLICATIONS

Supercharging CF Pathways’ offering of market-based low-carbon solutions with additional capabilities to deliver asset and investment-oriented solutions will accelerate energy transition processes for energy-intensive companies around the world. CF Pathways and Ara will combine their expertise, products and clients to enable a faster and more efficient net zero transition process for commercial & industrial customers.