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CleanCapital and CarVal: Partners in Renewable Finance Growth and Innovation

This was originally published by Matt Eastwick on LinkedIn.

When I started at CleanCapital last year, I joined a team that was already making a mark in transforming the clean energy finance market. By bringing efficiency to deal process, we continue to make great strides in simplifying investments with the goal of introducing more institutional investors to the renewable markets. We achieved another significant milestone last week by signing a $250 million equity partnership with CarVal Investors, a well-established investment firm, that enables us to acquire $1 billion in clean energy assets. The purpose of the deal is to provide the capital and other resources to support our rapidly growing pipeline of solar acquisitions. It also puts the pieces in place for us to achieve a number of financial market objectives.

Building a Flexible Capital Base

There are a broad range of acquisition opportunities emanating out of CleanCapital’s origination program, and this deal gives us the ability to apply the right capital and 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.

Adoption of Technology Platform

Our use of data and technology is one of CleanCapital’s many differentiating characteristics in the market. By having an institutional partner that completely onboards and digests deal information through our proprietary technology platform, we believe that we are making advancements in streamlining the institutional investment process.

Efficient Acquisitions

To date, we’ve acquired nearly $100 million in operating solar, leveraging our proprietary platform to streamline and expedite due diligence, closing complex deals across ten states. We cut out the middle man, which means better prices. Our proprietary platform systematically processes due diligence and analysis, allowing deals with a wide range of complexity to all close in less than 60 days. Examples of our portfolios include assets such as a 100kW system in California (power sold to a hospital), a 1.2MW system in Colorado (power sold to a university) and a 2.4MW system in New Jersey (power sold to a Fortune 100 company).

C&I Solar Securitization

CarVal is a seasoned practitioner in the structured products market and shares our view that the most efficient debt can often be found there. Together, we will be working towards the first “pure” small scale solar C&I securitization transaction. Being able to pool these assets and to tranche (or divide) them according to risk, the core tenets of securitization, will open up additional financing markets going forward.

In addition to CarVal’s equity commitment, we will access up to $750 million of debt capital that, in total, will provide for up to $1 billion in the coming months and years. The first tranche of this capital is being deployed immediately, and this stockpile even further accelerates our speed and ability to execute deals.

The rationale of the transaction can be summed up by the words of CleanCapital CEO Thomas Byrne, “We leverage data and technology to attract more investors to clean energy and accelerate clean energy adoption.”

We believe that CarVal, with its 30-year track record focused on credit-intensive investments and market inefficiencies, is the type of nimble, innovative capital partner that fits perfectly into CleanCapital’s capital markets strategy. Combined with our best-in-class underwriting and straight-forward approach to asset management, this deal brings us one step closer to our overarching objective of bringing great investment opportunities to a broader investor base. Clean energy projects provide solid, high-performing cash flows and should be a staple of every institutional investor’s asset allocation.

Learn more about this exciting new partnership.

CleanCapital announces $250 million equity partnership with CarVal Investors

New partnership, supports growing clean energy marketplace with up to $1 billion available to acquire and invest in solar projects

NEW YORK, NY- [April 9, 2018] CleanCapital, a fintech company that makes it easy to invest in clean energy, and CarVal Investors, a leading global alternative investment fund manager, today announced a new $250 million equity partnership that, including debt financing, enables the acquisition of up to $1 billion of clean energy assets. This partnership harnesses CarVal’s expertise across different asset classes and creates an opportunity to define clean energy as an investment-ready opportunity. To date, the CleanCapital team, founded by Jon Powers, Thomas Byrne, and Marc Garrett, has acquired nearly $100 million of operating solar projects. Their proprietary platform streamlines and expedites due diligence and analysis, allowing complex deals to close in less than 60 days.

The solar industry is on track to reach over 100GW of capacity by 2023; however, the flow of capital within the space remains largely stagnant. CarVal has a successful track record of leveraging the securitization market to enhance returns and tapping capital markets to broaden investable opportunities. This expertise will allow CleanCapital to bring much-needed liquidity to the historically capital-inefficient clean energy marketplace.

“CleanCapital’s approach is game-changing for accelerating investments in a sustainable energy future for America,” said Jerry Keefe, principal at CarVal Investors. “Their proprietary methodology to acquire solar assets takes what was once a complex and cumbersome process and makes it simple and secure for developers. We believe these assets have the potential to be solid, high-performing investments with predictable cash flows for investors. We’re excited to partner with CleanCapital as they continue to grow the clean energy economy and bring much-needed capital to the sector.”

“As the investment needs in renewables grow, broader participation from institutional investors is critical to transition from fossil fuels to a clean energy economy. This substantial capital commitment multiplies our ability to provide project owners with opportunities to successfully exit their portfolios. I’m convinced that the flow of capital into clean energy is irrepressible, and this deal is one more step in unlocking the billions of dollars of untapped capital sources that have been absent from this sector,” said Thomas Byrne, Co-founder and Chief Executive Officer of CleanCapital. “Partnering with CarVal Investors, one of the most dynamic and innovative capital partners in the market, increases the resources and experience to accelerate toward that goal.”

CleanCapital was connected to CarVal through Finitive, a financial technology platform providing institutional investors with access to alternative lending investments.

“Using its proprietary financial technology platform, CleanCapital has established a leadership role in the acquisition of solar renewable assets. We are excited that CleanCapital and CarVal have partnered to further accelerate the growth of CleanCapital’s portfolio. With this partnership and the capital provided by CarVal, CleanCapital will be able to achieve its acquisition goals for the near and medium term,” said Jon Barlow, Executive Chairman and founder of Finitive.

CleanCapital is a financial technology company that makes it easy to invest in clean energy. They deliver technology solutions to all aspects of the transaction processfrom lending to capital raising, origination to diligence. The proprietary technology platform 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.

About CleanCapital:

Founded in 2015, CleanCapital is a financial technology company that makes it easy to invest in clean energy. CleanCapital has 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. Stay up to date on the evolving market of clean energy finance by following the company on Twitter or Facebook or connecting via LinkedIn. Learn more at http://www.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 $103 billion in 5,300 transactions across 79 countries. CarVal has a history of successful energy and power investments and is innovative in structuring partnerships in the renewables industry. For more information, visit www.carvalinvestors.com.

About Finitive

Finitive is a financial technology platform providing institutional investors with turnkey, zero-fee access to alternative lending investments. Its highly selective process, world-class investment team, and unique platform efficiently deliver capital to its originator partners. Through Finitive, institutional investors access a multi-trillion-dollar market that encompasses a broad spectrum of non-bank lending sectors, including specialty finance, online lending, marketplace lending, and private credit funds. Finitive’s originator partners gain efficient access to a global network of investors who are actively allocating to alternative lending.  All regulated activities are conducted through North Capital Private Securities, member FINRA/SIPC. For additional information, please visit Finitive’s website at www.finitive.com.

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For more information:
Contact: Lauren Glickman, press@cleancapital.com, (504) 258-7955