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CleanCapital and CarVal Investors Acquire 75.2 Megawatt Solar Portfolio and Close on $300 Million Debt Facility with Credit Suisse

NEW YORK—July 18, 2019—CleanCapital announced today its largest acquisition to date, a 75.2 megawatt solar portfolio made up of 15 operating solar projects in New Jersey. This is the fourth in a series of acquisitions made through CleanCapital’s $250 million investment vehicle with CarVal Investors. CleanCapital now owns and operates 180 MW of renewable energy assets and holds $465 million worth of assets under management. 

Concurrent to this acquisition, CleanCapital and funds managed by CarVal Investors have closed on a $300 million debt warehouse facility with Credit Suisse.

The solar portfolio, dubbed “Olympic”, was acquired from KDC Solar LLC (“KDC”). KDC, a private, non-utility affiliated owner and operator of large-scale C&I solar power generation, is majority owned by Diamond Castle Holdings, LLC. Fox Rothschild represented KDC in this deal.

The 15 operating solar assets, which entered commercial operation between 2011 and 2016, average 5 MW and range in size from 157 kW to 10 MW.  Off takers for these projects include Fortune 100 companies as well as local governments and institutions.

“This acquisition, our largest to date, solidifies CleanCapital’s position as one of the leading owner-operators of C&I solar in the U.S.,” said Thomas Byrne, CEO of CleanCapital.

The acquisition was led by Melinda Baglio, Chief Commercial Officer and General Counsel at CleanCapital, who added, “This portfolio is a perfect illustration of how our technology gives us a competitive edge when it comes to conducting due diligence on sizable and complex portfolios.” 

“As one of the largest C&I solar developer/owner/operators in New Jersey we are pleased to close this transaction with CleanCapital, which is focused on owning C&I solar projects and has the ability and scale to own and operate these C&I projects for many years to come,” said Alan Epstein, President and CEO of KDC Solar LLC.

The Olympic acquisition illustrates CleanCapital’s effective execution on the aggregation strategy launched in partnership with CarVal Investors in 2018. The company plans to leverage the proceeds to further accelerate acquisitions of small-scale renewable energy projects throughout the U.S., building well-constructed portfolios attractive to institutional investors in the ABS market.

“The debt warehouse facility grants us access to a new type of financing, bolstering our overall capital capacity to acquire distributed solar and energy storage projects,” said Matt Eastwick, Chief Investment Officer at CleanCapital. “This seminal financing takes us a step closer to our long-term vision of securitization, which is key to our mission to drive institutional investment in clean energy.”

“We’re proud to partner with CleanCapital, whose innovative approach to structuring these investments has made it, in our view, the clear industry leader in clean energy finance,” said Jerry Keefe, Principal at CarVal Investors. “With CleanCapital’s active approach to asset management, we believe renewable energy portfolios have strong potential as long-term investments. Our acquisitions in partnership with CleanCapital total more than 100 MW since May of last year, reflecting our confidence in these assets.”

About CleanCapital
CleanCapital is an industry-leading clean energy investment platform. Launched in 2015 by co-founders Thomas Byrne, Jon Powers, and Marc Garrett, CleanCapital’s mission is to accelerate investment in renewable energy to address the urgent threat of climate change. CleanCapital has leveraged investments from BlackRock, CarVal Investors, John Hancock, and other partners to acquire more than $465 million of distributed operating solar assets. Learn more at cleancapital.com.

About CarVal Investors
CarVal Investors is a leading global alternative investment fund manager focused on distressed and credit-intensive assets and market inefficiencies. Since 1987, CarVal has invested $114 billion in 5,340 transactions across 80 countries. CarVal has an established history of energy and power investments and is innovative in structuring partnerships in the renewables industry. For more information, visit www.carvalinvestors.com.

Working with innovators at CleanCapital

I’m excited to announce the selection of my co-founders Thomas Byrne and Jon Powers to the inaugural Solar 40 under 40 list from Renewable Energy World. We founded CleanCapital in 2015 to make it easy to invest in clean energy. Since then we’ve built a proprietary technology platform that identifies, screens, and manages clean energy projects, enabling project owners an opportunity to exit their portfolios while providing accredited investors—including institutional investors, family offices, and investment funds—unique access to the clean energy investment market.

Be excited and inspired by your fellow co-founders

Having worked with Thomas Byrne and Jon Powers for nearly three years, I’m proud of the company and team we’ve built together at CleanCapital. Their passion and commitment to the clean energy industry remains a driving force for our company.


Thomas Byrne   Jon Powers
Thom and Jon are leading voices in expanding and improving solar industry and they are joined by a talented and inspiring group who I’m sure will continue to drive this industry forward.

Their leadership is an inspiration to our whole team and you don’t have to take my word for it.

I’ve known Jon since his days working in the White House for the Obama administration. His ability to bring synergies to the market, understand and overcome the barriers facing clean energy and sustainability is exceptional. His background in the military and passion for finding solutions to climate change resonate through his work everyday. Thom’s innovative approach and outlook to clean energy finance will help expand the clean energy marketplace as whole and drive more capital to the clean energy technologies that help the economy as well as the climate. This inspiring vision is what pushed me to join the team at CleanCapital and I’ve enjoyed every minute of it.

Zoe Berkery, Vice President, CleanCapital

 

I’ve known Thom for over a decade and continue to admire his clear commitment to the advancement of solar energy and his ability to develop innovative solutions to industry challenges. When it comes to executing on the most complicated transactions and leveraging partnerships, there is no one better to lead the charge than Jon.  Working together, Thom and Jon continue to make unparalleled contributions to the clean energy space and I’m honored to work beside them.

Melinda Baglio, Head of Acquisitions and General Counsel, CleanCapital

Believe in your solution

Our company was founded on the idea that investing in clean energy doesn’t have to be so hard. We’ve celebrated major milestones in the development of our proprietary technology platform to streamline the project acquisition and investment process. Last month, we celebrated another milestone: two of our projects were ranked as top performing assets by kWh Analytics in the industry’s first “Asset League Table.”

Addressing the climate crisis requires a significant increase in both public and private capital investments in clean energy. Some estimates are as high as $90 trillion over the next 15 years. The reality is that despite the historic growth clean energy is seeing, investment in the sector remains largely stagnant. By leveraging technology to streamline the entire financing process from facilitating data transfer and diligence from the sellers, to comprehensive and ease of underwriting by our investor partners. This efficient use of technology helps us to close transactions quickly and reduces many of the points of friction inhibiting broader investment in clean energy.

Looking to the future

I’m excited about the work we do at CleanCapital. In the last few months, our team has leveraged our new partnership with CarVal Investors to acquire new assets and bring our total to nearly $150 mil in operating solar assets. Through our proprietary platform and capital partnerships, the CleanCapital team continues to bring liquidity to a historically capital inefficient clean energy marketplace.