Yesterday CleanCapital, a clean energy investment company with a proprietary technology platform, announced a $250 million partnership with investment firm CarVal Investors. The company plans to pair this with up to $750 million in debt, which it says will enable acquisition of up to $1 billion in solar assets.
Historically, investment in the commercial and industrial (C&I) market has been challenging. Fixed finance costs and considerable variance on a project level has limited the financial benefits that can be spread between investors, structure owners and occupant companies.
CleanCapital has mostly focused on the U.S. C&I market to date, and the raise from CarVal Investors follows a $300 million deal with Jigar Shah’s Generate Capital and a $21 million deal with John Hancock, all in the last two years.
Matt Eastwick, the head of capital markets at CleanCapital, emphasized that this deal provides a flexible capital base. He noted the broad range of acquisition opportunities that the company has access to, and says that this deal provides the ability to “apply the right capital structure to each one”.
“Solar projects are underpinned by a robust base of high-quality contracted cash flows, and having a degree of flexibility allows us to optimize each investment opportunity,” notes Eastwick.
The company notes that it plans to deploy the first tranche of its new capital immediately.