We are investing in Pulse Power, a retail electricity company in Texas.
TTI Energy Holdings, LLC, will invest 25% of the raised capital in shares of Pulse Power based on a $45 million valuation. It will invest the remainder of the money (75%) in a 13% promissory note. The money will fund the management buyout of an institutional investor. We expect to collect the 13% for approximately 3 years and then double or triple the equity portion of our investment.
Pulse had $140 million in revenue and $7.8 million in adjusted EBITDA in 2020. It conservatively expects $217 million in revenue and $12.5 million in adjusted EBITDA in 2021. Audited financials and a Quality of Earnings report are available for the company. The Company serves over 100,000 residential customers in Texas.
The company intends to expand into additional states after the transaction is completed, and expects to sell the company in 2-3 years.
Watch the management investor presentation by registering here.
Contact Rita Karpel for more information.