Capital Dynamics, an independent global private asset management firm, announced that its Clean Energy Infrastructure (CEI) business and Sol Systems, one of the most experienced solar finance and development platforms in the United States, have formed a joint venture: Sol Customer Solutions. Sol Customer Solutions is a partnership focused on providing large pools of institutional capital direct exposure to the distributed generation (DG) market, a segment that offers some of the most competitive and compelling renewable energy solutions for commercial, municipal, and educational customers. Financial details of the transaction were not disclosed.
Today, large commercial, municipal and educational customers are increasingly deciding from where and how they source their electricity, thereby fundamentally transforming energy infrastructure in the United States and abroad. The declining costs of solar energy and storage, as well as increasing local, state and corporate renewable energy targets, are driving significant growth in the distributed solar generation space. Today, two-thirds of Fortune 100 companies have set renewable energy targets and are leading global corporate procurement through PPAs.
“We are excited to partner with Sol Systems to acquire a significant portfolio of DG projects while working alongside a premier development platform in the space,” said Tim Short, Managing Director at Capital Dynamics. “The large scale DG market is rapidly evolving and this investment is a critical part of our broad focus on this important sector in the market. We are confident Sol Customer Solutions is well positioned to serve this expanding customer base.”
“Sol and Capital Dynamics have a shared vision to better serve customers with a more comprehensive and integrated suite of renewable energy and storage solutions,” said Yuri Horwitz, Chief Executive Officer of Sol Systems. “There is tremendous opportunity for our clients throughout the nation to transition into more sustainable, resilient and low-cost energy. We plan to be a catalyst for that transition.”
Since 2008, Sol Systems has financed and/or developed over 850 MW of solar assets. Sol Customer Solutions team will remain in Sol Systems’ Washington, DC headquarters, and will be managed by Andrew Gilligan, Sol Systems’ Vice President.
“Sol has strategically built and grown its solar development business over time based on a commitment to and reputation for excellence,” said Gilligan. “This partnership enables Sol Customer Solutions to accelerate its growth as one of the preeminent players in the industry, and expand the deployment of DG solar throughout the United States.”
Capital Dynamics Clean Energy Infrastructure team has approximately $5.9 billion of assets under management and has developed deep and sustained partnerships with institutional investors globally, including some of the largest sovereign wealth and pension fund clients in the world. Through Sol Customer Solutions, these institutional investors will gain direct access to the benefits and growth of the distributed generation sector.
Legal representation was provided by Hans Peter Dyke, a partner in the Energy & Power practice at Bracewell LLP. Legal representation for Capital Dynamics was provided by Founding Partner Nik Patel at Amis, Patel and Brewer LLP. Cohn Reznick Capital provided investment banking services for Sol Systems.
— Solar Builder magazine