Spruce Finance just added 12 megawatts of residential solar to its portfolio

Spruce finance-001

Spruce Finance, a leading owner and operator of distributed generation solar and residential energy assets in the U.S., announced it has acquired a significant portfolio of residential assets. The acquisition reflects Spruce’s growth strategy, which is centered around continued expansion of its operating portfolio and servicing platform.

Spruce’s acquisition of the fund, consisting of 2,169 residential solar systems totaling 12.1 megawatts, was closed yesterday. The purchase brings Spruce’s portfolio of operational solar assets to 173 MW of primarily residential solar assets serving over 25,000 customers across 11 states. The transaction follows a recent $50 million equity investment from Spruce’s owner HPS Investment Partners, a leading global investment firm with over $48 billion of assets under management, as well as a $208 million debt financing completed earlier this year.

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“This acquisition reflects Spruce’s strategy of expanding by acquiring seasoned solar portfolios and adding value through best-in-class servicing,” said Christian Fong, president and CEO of Spruce Finance. “As one of the largest privately owned residential solar companies, Spruce is able to execute quickly due to our experienced team and flexible capital. We’re actively deploying capital into similar opportunities in the residential and community solar space and continue to evaluate additional acquisitions.”

The residential solar assets will be serviced by Spruce’s independent subsidiary, Energy Service Experts (ESE), which provides asset management services to more than $1 billion of residential solar assets. Houston-based ESE manages both Spruce’s own assets and third-party owned portfolios. Spruce’s latest acquisition enables further expansion and efficiencies for ESE.

— Solar Builder magazine

Spruce Finance just added 12 megawatts of residential solar to its portfolio

Spruce finance-001

Spruce Finance, a leading owner and operator of distributed generation solar and residential energy assets in the U.S., announced it has acquired a significant portfolio of residential assets. The acquisition reflects Spruce’s growth strategy, which is centered around continued expansion of its operating portfolio and servicing platform.

Spruce’s acquisition of the fund, consisting of 2,169 residential solar systems totaling 12.1 megawatts, was closed yesterday. The purchase brings Spruce’s portfolio of operational solar assets to 173 MW of primarily residential solar assets serving over 25,000 customers across 11 states. The transaction follows a recent $50 million equity investment from Spruce’s owner HPS Investment Partners, a leading global investment firm with over $48 billion of assets under management, as well as a $208 million debt financing completed earlier this year.

Don’t miss our Solar Power International preview issue in September — subscribe to Solar Builder magazine (print or digital) for FREE today

“This acquisition reflects Spruce’s strategy of expanding by acquiring seasoned solar portfolios and adding value through best-in-class servicing,” said Christian Fong, president and CEO of Spruce Finance. “As one of the largest privately owned residential solar companies, Spruce is able to execute quickly due to our experienced team and flexible capital. We’re actively deploying capital into similar opportunities in the residential and community solar space and continue to evaluate additional acquisitions.”

The residential solar assets will be serviced by Spruce’s independent subsidiary, Energy Service Experts (ESE), which provides asset management services to more than $1 billion of residential solar assets. Houston-based ESE manages both Spruce’s own assets and third-party owned portfolios. Spruce’s latest acquisition enables further expansion and efficiencies for ESE.

— Solar Builder magazine

Spruce Finance lands another $50 million equity investment

Spruce finance-001

Spruce Finance‘s comeback trail continues. The owner and operator of distributed generation assets in the U.S., has received a $50 million equity investment from its owner HPS Investment Partners. This follow-on investment demonstrates HPS’ commitment to Spruce and the solar asset class, providing support for continued growth through acquisition of solar assets.

The investment comes as Spruce, the second-largest privately held residential solar company in the U.S., is actively pursuing opportunities to add operational solar assets to its 150 MW portfolio. Spruce is looking beyond residential portfolios and is also evaluating community and commercial solar assets.

The equity funding follows Spruce’s recent closing of a $208 million senior secured debt financing of its residential solar assets. Its independent subsidiary, Energy Service Experts, provides asset management services to more than $1 billion of residential solar assets, including both Spruce’s own assets and third-party portfolios. In November of last year, Spruce announced that it was acquired by HPS Investment Partners.

Key hire

Tim Distler recently joined Spruce as vice president of corporate development to lead the company’s project finance and M&A activity. Distler has extensive experience in solar financing, having led a solar development and finance platform for LG Electronics. Prior to LG, he was head of project finance at RET Capital and also held roles at Recurrent Energy, PG&E and E.ON Climate & Renewables.

“The continued support of HPS, paired with Tim’s M&A expertise, ensures that we have both the capital and the capabilities needed to acquire attractive portfolios.” said Christian Fong, president and CEO of Spruce Finance, “The growth of our team’s expertise and our financial resources set us up for a strong growth trajectory.”

— Solar Builder magazine

Spruce Financial closes $208 million secured senior financing of its owned residential solar assets

Spruce finance-001

The revived Spruce Finance, focused now as an owner and operator of distributed generation solar and residential energy assets, just announced the closing of a $208 million senior secured financing of its residential solar assets. The debt financing gives Spruce access to competitively priced capital, further optimizing its capital structure and positioning it to grow in new solar markets.

Silicon Valley Bank and ING both acted as coordinating lead arrangers and joint book runners. Key Bank acted as a joint lead arranger and there were several other participating lenders. Spruce’s ability to access competitive debt capital markets at scale reflects its position as a trusted market leader in the solar industry. Spruce is actively pursuing acquisition opportunities to add to its 150 MW portfolio.

“As the solar financing landscape continues to evolve, we see an opportunity to grow our portfolio while providing integrated services,” said Christian Fong, president and CEO of Spruce Finance, “Our strong financing and M&A capabilities, paired with our subsidiary Energy Service Experts’ servicing offerings puts us in a unique position in the industry.”

In November of last year, Spruce announced that it was acquired by HPS Investment Partners, a leading global investment firm with more than $48 billion of assets under management. Spruce’s independent subsidiary, Energy Service Experts, services more than $1 billion of residential accounts, providing financial asset management, consumer billing and collections, fleet management and homeowner support.

— Solar Builder magazine

Spruce Finance sells $250 million solar loan portfolio

Spruce finance solar loans

Spruce Finance, a provider of consumer financing for residential energy efficiency and solar technology, completed a whole loan sale of $250 million of its efficiency and solar loan portfolio to a large North American bank with expertise in consumer loan assets. This marks the second major sale of loan assets for the company.

“We’re pleased about institutional investors’ growing confidence in the lending market for renewable and energy efficient home technologies. These loans, with terms of 7 to 20 years, allow for financing that better matches the useful life of the asset, creating much better value for the consumer. The capital unlocked from this transaction, combined with incremental capital recently provided by a global investment firm, will support the future growth of our business,” said Steve Olszewski, Spruce’s chief operating officer.

The company expects the sale to serve as a foundation for future loan flow sales transactions.

Financing beyond FICO: Using asset-backed loans, PACE to get solar deals done

More about Spruce

Spruce provides homeowners with multiple ways to finance residential energy efficiency improvements and solar systems. This helps people reduce their utility bills and improve their homes and communities. We make our finance products available on a single software platform and sell them through a national network of verified channel partners. Our platform simplifies the sales experience for our channel partners and helps them sustainably grow their businesses. A private company headquartered in San Francisco, we operate in all 50 states and Washington, DC. We have raised more than $2B in project finance and currently serve nearly 70,000 homeowners.

— Solar Builder magazine