PosiGen closes $100 million preferred equity financing

Magnetar Capital was the lead investor and will name two new members to PosiGen’s board of directors.

January 5, 2022 Ryan Kennedy

PosiGen helps to deploy solar power to Hurricane Ida victims in Houma, Louisiana

Image: PosiGen

PosiGen, a provider of solar PV and energy efficiency solutions to low-to-moderate income (LMI) households announced the close of a $100 million preferred equity financing, led by Magnetar Capital’s Energy & Infrastructure group. The Investment group will nominate two directors to join PosiGen’s board. PosiGen’s existing investors Emerson Collective, Irradiant Partners, Activate Capital, The Builders Fund, SJF Ventures, and the Kresge Foundation also participated in the financing.

PosiGen said the financing will aid business growth, and will help close the affordability gap of solar, storage, and energy efficiency upgrades for LMI customers. To date, PosiGen has served over 19,000 customers. About 50% of PosiGen’s customers are in communities of color, the company said.

Tom Neyhart, CEO of PosiGen said, “We believe that serving LMI customers who will benefit the most from our solar plus energy efficiency offerings creates a virtuous cycle of value – making a difference in the lives and communities of the families we serve, while at the same time driving customer engagement and portfolio performance.”

Wilson, Sonsini, Goodrich & Rosati served as legal advisor to PosiGen, and Kirkland & Ellis LLP advised Magnetar. The transaction was facilitated by Marathon Capital. PLEXUS Solutions provided diligence support to Magnetar and is planned to provide ongoing monitoring for PosiGen’s asset financing.

Headquartered in New Orleans, Louisiana, PosiGen sprung into action when Hurricane Ida ripped through the local community, downing old transmission wires and leaving thousands in the dark. The company deployed 12 solar power stations at disaster supply sites across the affected area.

The self-contained solar power stations included 30 solar panels providing 11,400 W, along with an inverter and battery capable of providing 27,000 watt-hours of electricity.

The company also has a history of working with the Connecticut Green Bank to provide no-upfront-cost solar leases with no credit requirements to LMI customers in the state. A case study on the 2015-established program was run this year, finding an increase in payment delinquencies compared to typical solar leases, but a reasonable return on investment resulted from the program.

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