CleanCapital nets $500M from Manulife to fund mid-market solar + storage projects

CleanCapital

Middle-market solar and storage project investor CleanCapital received an additional commitment of up to $500 million from Manulife Investment Management. CleanCapital will leverage this investment to fund early-stage solar and storage development and acquire renewable energy assets throughout the United States, as well as expand its partnerships in emerging markets.

Additionally, the company surpassed a major investment milestone: the cumulative deployment of more than $1 billion to fund operating, new construction, and early-stage development solar and storage assets. Already one of the largest commercial solar asset owners in the U.S., CleanCapital continues to lead the clean energy transition by connecting institutional capital to the myriad opportunities available in the middle market sector.

“Our team’s climate investing capabilities, combined with our rigorous and highly institutionalized process, have earned the trust of the world’s leading institutional investors. This second infusion of balance sheet capital follows the successful deployment of Manulife Investment Management’s original $300 million investment, announced in 2021,” commented Thomas Byrne, CEO of CleanCapital. “This is our largest raise to date and will enable CleanCapital to play a key role in leading the energy transition to meet our nation’s net zero emissions targets.”

“We are delighted to continue our partnership with CleanCapital. Distributed solar and storage is a swiftly growing market, and our commitment to investing in assets that support the global shift towards clean energy and GHG reduction remains steadfast. We view the CleanCapital team as leading the way in the distributed generation solar space and look forward to supporting the company as it continues to grow its asset base and reach across the U.S.,” said Recep Kendircioglu, global head of infrastructure, Manulife Investment Management.

CleanCapital’s investments to date comprise a diverse renewables portfolio of more than 200 distributed generation projects totaling 400 MW and spanning 26 states and one U.S. territory, as well as corporate investments in renewable energy project developers.

“We are proud to announce that we’ve deployed $1 billion into funding the clean energy transition,” remarked Melinda Baglio, Chief Investment Officer and General Counsel at CleanCapital. “The projects that CleanCapital owns and manages generated 200GWh of clean energy last year, helping businesses, non-profits, and municipalities across the country avoid carbon emissions and meet their renewable energy goals. This funding, along with our established debt and tax equity facilities, will enable us to exponentially grow that impact through our own 1.4 GW development pipeline and future acquisitions and investments.”

CleanCapital has established successful partnerships with multiple emerging and notable developers by focusing on key relationships and areas of opportunity. Within the last year, CleanCapital has made major moves in the solar and storage market, most notably in emerging and underinvested markets. In June of 2022, CleanCapital acquired BQ Energy, the leading developer of solar projects on landfills and brownfields in the U.S. The acquisition has allowed BQ Energy to more effectively deploy clean energy in high impact areas.

In July of 2022, CleanCapital purchased the largest operating solar project on Guam, along with the development pipeline on the island. And last August, CleanCapital made a corporate investment in Renewable IPP (RIPP), an Alaska-based solar developer, to fund the development of Alaska’s largest solar project, as well as its pipeline across the state.

Most recently, CleanCapital made its first investment in Rhode Island with a 26 MW portfolio of operating solar assets and acquired a 35 MW operating solar portfolio in New Jersey. As a leading investor and owner-operator of solar and storage assets, CleanCapital will continue to build its portfolio by applying its veteran expertise to acquiring, developing, constructing, and operating high-performing projects.

Kirkland & Ellis and Baker McKenzie represented CleanCapital and Manulife, respectively, as legal advisors on this transaction.

— Solar Builder magazine

[source: https://solarbuildermag.com/news/cleancapital-nets-500m-from-manulife-to-fund-mid-market-solar-storage-projects/]


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