Lionheart Capital is assembling as much as $2.25 billion to support investments in Venezuela's energy sector through a special purpose acquisition vehicle, according to individuals familiar with the matter. The NASDAQ-listed blank-check company is reported to be in negotiations to acquire oil fields in Venezuela, with potential purchase prices ranging from $150 million to $400 million.
Those discussions have not concluded and would require regulatory clearance from both Caracas and Washington prior to closing. The sources did not disclose which specific assets are being discussed or provide a timeline for negotiations.
Financing for the proposed transactions would be led by Clear Street LLC, a Wall Street brokerage, which has agreed to supply $1.5 billion intended to cover both the purchase price and follow-on capital expenditures to restore and rehabilitate the fields, the people said. The balance of the up-to-$2.25 billion package would be provided from Lionheart's own resources and additional bank financing.
The prospective deals come as a growing number of investors have shown interest in Venezuela's oil industry amid changes in how the state manages energy assets. Sources said this shift accelerated after President Nicolas Maduro's capture by U.S. forces in January, drawing firms that are betting private capital can help bring production back after prolonged economic strain and sanctions.
At this stage, none of the proposed purchases are final. Observers cited in the reporting emphasize that any transaction would be conditional on regulatory approvals and the completion of due diligence, and specifics about the assets and the timing of any agreements were not provided.
What we know:
- Lionheart is arranging up to $2.25 billion through a special purpose acquisition vehicle to invest in Venezuela's energy sector.
- Negotiations are underway to buy oil fields for between $150 million and $400 million, though assets and timing were not specified.
- Clear Street LLC has agreed to provide $1.5 billion for acquisitions and capital expenditures; the remainder would come from Lionheart's funds and bank financing.
The situation remains fluid. Parties involved in the talks described the arrangements as non-final, and the requirement for regulatory approval from both Venezuelan and U.S. authorities represents a material condition for any deal to proceed.