- What types of assets are you interested in purchasing?
At LXI Capital, we focus on acquiring operational renewable energy assets such as solar farms, battery storage projects, hydropower, renewable diesel, biogas, ethanol, and renewable natural gas (RNG) facilities. We prioritize assets with long-term contracts like Power Purchase Agreements (PPAs) or offtake agreements. Our focus is primarily on North America. - How do you determine the value of an asset?
Our valuation process is thorough and considers multiple factors including cash flows, contractual agreements, operational efficiency, technology risks, and current market conditions. We aim for win-win solutions and prefer bilateral negotiations rather than purely price-driven bidding processes. - What is the process for selling my asset to LXI Capital?
- Send your teaser including project specifics.
- Introductory call.
- Sign NDA.
- Due diligence.
- Term sheets and negotiations.
- Closing and post-closing asset transfer.
We continuously streamline our processes to improve efficiency for all parties involved.
- What are the main criteria you look for in an asset?
We seek assets with stable, predictable cash flows backed by long-term contracts like PPAs or offtake agreements. We also prioritize strong operational performance with minimal maintenance issues and low technology risks. We value straightforward communication and mutual alignment on expectations. - How quickly can you complete the acquisition?
Our typical timeline ranges from 30 to 120 days, depending on asset complexity and negotiation. For well-documented assets, it may be quicker. Expect a longer process for the first transaction with a new asset owner, but subsequent deals will move faster as we build familiarity. - What are your financing options? Will you pay in cash?
We have flexible financing options but prefer cash transactions in most cases. - What is the typical deal structure?
We seek majority control, typically acquiring 51% to 100% of the asset. - How do you handle assets with existing debt or liabilities?
We evaluate assets on a case-by-case basis and can assume existing debt or work with asset owners to resolve liabilities as part of the acquisition. - How do you ensure a smooth transition after the acquisition?
We collaborate closely with the current management and operational teams, creating a tailored transition plan to ensure minimal disruption. In many cases, we retain existing personnel post-acquisition to maintain continuity. - Will I have any ongoing responsibilities after selling the asset?
Once the sale is finalized, you typically won’t have ongoing responsibilities unless specific terms are outlined in the purchase agreement, such as consulting or transitional support. - Why should I sell my asset to LXI Capital?
LXI Capital has deep expertise in renewable energy markets, offering fair valuation, efficient deal structures, and smooth transitions. If you are the original developer, we ensure that your assets are in good hands, as we treat each project with the same care as if we had developed it ourselves.