Public Commentary: The description below outlines FG Capital Advisors’ approach to solar project acquisition funding. It is provided for informational purposes only and does not constitute investment advice or a solicitation.
Solar Project Acquisition Funding – Boutique Investment Banking Solutions
Acquiring an operating solar portfolio or utility-scale site requires tailored financing that matches project cash flows, regulatory profiles and ownership objectives. As a boutique investment bank, FG Capital Advisors structures debt and equity packages designed to close transactions on suitable commercial terms and meet sponsor return targets.
Funding Structure Overview
Solar acquisitions often combine senior debt, mezzanine facilities and sponsor equity. The goal is to align debt amortization with power-purchase agreement (PPA) revenues while preserving upside. Typical leverage ranges from 60% to 75% of enterprise value, depending on contract tenure and counterparty quality.
Capital Stack Components
| Layer | Description | Typical Range |
|---|---|---|
| Senior Debt | Term loan secured by project assets and cash flows | 60–75% LTV |
| Mezzanine Debt | Subordinated tranche with deferred payment feature | 5–15% of capital |
| Sponsor Equity | Cash equity or rollover of sale proceeds | 15–35% of project cost |
Key Underwriting Criteria
- PPA Tenor: Long-term offtake agreements reduce merchant risk.
- Counterparty Rating: Investment-grade utility or corporate offtaker preferred.
- Technology Track Record: Proven module and inverter performance.
- Operational History: Minimum 12 months of production data for brownfield sites.
- Regulatory Clearances: Permits, interconnection agreements and land leases in place.
Indicative Pricing & Terms
| Term | Range |
|---|---|
| Senior Debt Spread | SOFR + 175–250 bps |
| Mezzanine IRR | 12–18% |
| Tenor | 10–15 years, aligned with PPA life |
| Amortization | Sculpted to match seasonal cash flows |
Execution Timeline (12–16 Weeks)
Weeks 1–3
— Mandate and initial term-sheet negotiation.
Weeks 4–8
— Due diligence: technical, legal, environmental.
Weeks 9–12
— Credit approval, documentation drafting.
Weeks 13–16
— Conditions precedent clearance and funding.
Boutique Bank Advantages
- Senior banker attention and direct partner access throughout process.
- Flexibility to tailor covenants and reserve structures to project specifics.
- Access to specialized private-credit and sustainable-finance pools.
- Streamlined decision-making with limited internal layers.
Engagement
Solar project sponsors evaluating acquisition funding options may contact FG Capital Advisors for a confidential review. Our team will outline available debt and equity packages tailored to your transaction.
This document is for informational purposes only. It does not constitute investment advice or an offer to sell or purchase any security or service. Seek independent professional advice before acting on any information herein.
