True Green Capital Management LLC (“TGC”), an institutional asset manager specializing in distributed power generation, with a current focus on commercial photovoltaic solar, announced it has closed its latest discretionary fund, True Green Capital Fund III, L.P. (the “Fund”, “Fund III”). The Fund reached its hard cap of $350 million and was oversubscribed. The Fund’s Limited Partners include a diversified institutional investor base of leading endowments, foundations, investment advisors’ clients, fund-of-funds, family offices, and insurance companies.
“We are pleased to announce the closing of Fund III following the success of our predecessor Fund II which closed in 2015 and is fully invested. Our proven investment strategy offers institutional investors the opportunity to participate in the fast growing commercial and industrial distributed solar power generation markets, providing a reliable income stream and combining strong upside potential with prudent downside protection,” said Dr. Panos Ninios, Managing Partner of TGC.
“Solar technology has improved to the point where it is price competitive with traditional power generation infrastructure and provides energy consumers with power price certainty for decades to come. We are pleased that our institutional investor base has shown confidence in TGC and in an asset class that is both good for the environment and their investment portfolios,” said Bo Wiegand, Partner at TGC.
TGC seeks to deliver superior risk-adjusted returns and has developed a scalable, proprietary organizational and portfolio construction process that aims to combine the certainty of long-term fixed-price contracts with highly rated creditworthy partners augmented by the upside offered by power sales, environmental credits and real asset optionality. As part of this process, TGC has developed a privately negotiated pipeline of approximately $1.5 billion in projects.
To date, TGC has deployed approximately 30% of its Fund III capital in a portfolio of pre-identified projects, continuing its innovative investment strategy of self-originating, building and financing renewable energy electric power infrastructure projects. The existing investment portfolio consists of commercial and sub-utility scale solar power plants, including one of the largest roof-top installations in the world. The projects have contracted offtake agreements providing municipal utilities, military bases, universities, and corporate clients with clean, renewable energy at a fixed price. True Green Capital expects to deploy Fund III over the next 1-2 years across similar investment opportunities in the U.S.