The challenge

AZZO is an Australian-HQ energy management solutions provider (a mix of labour services, hardware and software) to C&I and utility-scale renewable energy customers.

As a company with established but growing US operations and the tailwinds from the energy transition picking up in Australia, AZZO’s management decided it was time to bring in external funding to allow the founders to derisk their lifestyles and position the business for its next phase as an international company.

Our solution

Growth Capital Raise Process

Rennie Advisory’s Deals team was engaged by AZZO as sell side financial advisor to support the business with their growth capital raise process. Broadly, the scope of Rennie’s mandate was the following:

• Defining the desired transaction outcome alongside AZZO including valuation expectations, desired funding amount, preferred investor archetypes and use of funds
• Development of a targeted prospective investor list capable of providing the desired transaction outcome
• Development of a professional short-form investment teaser and long-form management presentation for communications with prospective investors
• Facilitation of all meetings and communications with prospective investors, including formal Q&A processes
• Management of the transaction dataroom
• Leading commercial negotiations with prospective investors alongside AZZO towards non-binding indicative offers and through to the execution of formal transaction documentation

Our impact

Through the execution of the above mandate, AZZO successfully closed their growth capital round of A$15M+ approximately 8 months from commencement with investment secured from Angeleno Group, a US west-coast based impact growth equity fund.

Angeleno provided AZZO with capital to further bolster their US presence and continue to expand their Australian customer base while also providing an expert advisory board to open AZZO’s solutions to a broader customer base, particularly in the US market.

The Rennie Deals team was pleased to support AZZO throughout this transaction as their financial advisor.

Key insights

• Certain financial investors can provide considerable strategic benefits given their access to industry experts and leaders which are often engaged on the investors’ advisory board
• Capital raising is more about the founders and what they want the next phase of their life to look like than it is about the business and what it needs – a transaction that strikes the right balance of primary and secondary capital can achieve both founder and business objectives