CleanFund Announces Initial Funding of Series B.
PRESS RELEASE — October 10, 2017. CleanFund Commercial Capital, Inc., the leading direct provider of commercial Property Assessed Clean Energy (“C-PACE”) financing, announced the first closing of the company’s $15M Series B equity financing round, led by entities affiliated with Vulcan Capital. In addition, Vulcan Capital has committed to provide CleanFund $100 million in C-PACE capital to support the adoption of clean energy and other value-added improvements to commercial properties nationwide.
Vulcan Capital’s impact lending strategy invests in businesses that deliver both competitive financial returns and meaningful social and environmental impact. “For Vulcan Capital, CleanFund’s contribution to the advancement of sustainable real estate nationwide makes it the perfect combination of shared vision and investment opportunity,“ said Ben Kolpa, managing director, Vulcan Capital. “It’s important to back leading companies that can deliver innovative solutions for property owners seeking to lower their operating expenses and carbon footprint.”
The founders of CleanFund teamed up in 2008 to create the first PACE legislation in California, with their sights on the $60 billion commercial energy efficiency and solar market. Since forming in 2009, CleanFund’s growth has doubled year-over-year, financing about 25% of all C-PACE transactions across the US. With the initial funding of the Series B secured, CleanFund is poised to accelerate its growth, and to continue meeting commercial property owners’ demand for long-term capital to make vital upgrades to their properties.
Because C-PACE is long-term, fixed-rate financing that is secured as a parcel tax assessment, it solves many problems that have historically prevented commercial property owners from implementing energy efficiency retrofits or renewable energy. Legislatively approved in 34 states, PACE financing enables property owners to make their assets/buildings more valuable and environmentally sound. CleanFund provides property owners with the upfront capital for the improvements, which are repaid through property tax payments over a 20- or 30-year period.
“What makes CleanFund the leading C-PACE company is our expertise, our extensive relationships with commercial property owners and their vendors, as well as our technology to efficiently process and close C-PACE transactions. Our team has extensive experience in real estate development, construction, structured finance, public policy, PACE, energy efficiency, software development and renewable energy — all with a keen appreciation for what it takes to drive value for commercial property owners. Our expertise in structured finance, for instance, enables us to prepare our PACE bonds for securitization in the global asset-backed securities market, helping to create an entirely new asset class while driving down the cost of financing for our clients.” says Greg Saunders, CEO of CleanFund.
There have been a number of milestones for CleanFund over the past year:
- Largest C-PACE Funding
- Largest C-PACE Funding in Texas
- Largest C-PACE Solar Project
- Over $100 Million in originations
CleanFund aims to continue breaking records and setting the standard of excellence in the C-PACE industry. “You can expect to see big breakthroughs in the number of states in which we are closing transactions, as well as the impact our technology is having to foster the broader adoption of C-PACE nationwide. We are incredibly fortunate to have the support of Vulcan Capital,” says Saunders.