Altus Buys 220 MW Solar Portfolio from RE Equity Firm TGC in USA

Connecticut based renewable energy infrastructure private equity firm, True Green Capital Management has announced that it has signed a binding agreement last week with Altus Power to sell a portfolio of approximately 220 megawatts (MW) of distributed solar assets. The value of the deal is revealed as $293 million. TGC and Altus Power expect the transaction will close in early 2023.

Altus Power is also a US-based renewable energy player that originates, develops, owns, and operates locally sited solar generation, energy storage, and charging infrastructure across America.

The official statement said that the portfolio comprises approximately 207 MW of commercial scale, operating solar assets that were developed and constructed by TGC, and approximately 13 MW that are nearing construction completion. The majority of the portfolio is located in California, New York, New Jersey, and Massachusetts.

TGC said that the equity financing for these assets was provided by the third fund of TGC, True Green Capital Fund III, and its financing partners provided debt and tax equity.

Panos Ninios, Managing Partner and Co-Founder of TGC, said, “Altus Power shares our fundamental belief that commercial scale, distributed solar generation is the most attractive segment of our industry. Our collaboration has facilitated TGC’s successful exits of our first and second funds and now a partial exit of Fund III.”

Gregg Felton, Co-CEO, Altus Power, stated, “TGC has a long history of successfully investing in commercial-scale solar, with underwriting standards consistent with our own.”

Chris Kirkman, Chief Financial Officer, TGC, also added, “TGC’s partnership with Altus Power has been mutually beneficial. Our alliance again enabled the efficient execution of a transaction that advanced our firms’ respective strategies.”

New fund, renewed focus

TGC said that with its recently closed $660 million fourth fund, it continues to target these core markets, as well as select new ones in North America, the UK, and the European Union. In these markets, the firm believes, the same capabilities that have enabled the successful realization of its strategy to date similarly provide it with a competitive advantage.

TGC claims to have raised four private equity funds, managing over $1 billion of equity capital, including closing in May 2022 its fourth fund with over $600 million of capital to be invested over the next four years. To date, TGC has invested in distributed solar power generation portfolios across 14 U.S. states delivering clean, reliable renewable energy with an increasing focus in the UK and European Union.