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Sector

Private Equity

Geography

Boston, MA, USA

Deal Date

July 2021

Deal Size

$10m

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About the Manager

Boston-based WAVE Equity Partners (“WAVE”) provides early growth equity to market-validated companies in essential sectors including clean air, energy, food, water, and waste recycling. WAVE invest at revenue stage in businesses with "hard-tech" innovations in energy and industrial markets. A company's product and market development risks have already been substantially retired at this stage.

Given the critical nature of these above essential industries in supporting a healthy planet, the ESG impact of WAVE’s investment approach is never an afterthought but a core value inherent to the process. Since founding in 2013, WAVE have invested $220m across funds I and II into a total of 11 portfolio companies operating in these sectors. The senior team’s history in industrial growth impact investing prior to founding WAVE amounts to over 100 years' experience.

Investment Approach:

WAVE

  • Investing in business models that are acceptable, affordable and financeable today but at inflection points

  • Investments create new sectors of employment, improving energy-water-food infrastructure, and reducing waste – all without public subsidies

  • Since they provide innovative alternatives that alter the fundamental economics of businesses, their influences are broad and long lasting - as such investments are compelling opportunities to hedge against inflation through long-term profitability

  • Maintaining a small and selective portfolio of high conviction companies, ensuring that each company receives the full attention of the WAVE team as they help scale the businesses’ proven technologies

About the Deal

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Investment Amount

$8.5 - $10 million total
$6 million in July 2021 and $2.5 million before 2021-end
$1.5 million more may be drawn before July 2022

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Structure

A redeemable preferred return structure that is collateralized by assets and economics of existing WAVE funds.

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Capital Protection

Control of collateral which is estimated to be between 4x - 6x invested capital, and with a contingent guarantee from the management company.

The Manager's Use of Proceeds

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To refinance obligations related to the WAVE’s formation and to support growth