True Green Capital closes solar fund on $113m

The energy infrastructure investment firm has already deployed most of the capital committed to Fund II, which reached its final close above its $100m target.

True Green Capital (TGC), an asset manager primarily focused on distributed, commercial photovoltaic solar power, has closed its second fund on $113 million, the Connecticut-based firm said in a statement on Monday.

The majority of the True Green Capital Opportunity Partnership fund (Fund II), which exceeded its initial $100 million target, has been committed to pre-identified projects. The money, however, has not been completely drawn down yet, a spokesperson told Infrastructure Investor. The firm expects the fund to be fully deployed by September.

Investors in the vehicle include endowments, foundations, investment advisors, an insurance company and family offices, TGC said.

“Existing portfolio investments include solar plants installed at several municipal locations, military housing, several manufacturing companies and retailers,” according to the statement.

The firm said it has developed a privately negotiated pipeline of approximately $700 million in projects that are currently under control documents or in negotiation and due diligence. In addition, Fund II investments are supported by long-term fixed-price contracts with “highly rated creditworthy partners,” TGC said without naming those partners.

Founded in 2011, TGC currently has over $200 million in assets under management. It focuses on the US distributed, commercial PV solar market, which it finds attractive as the cost of solar generation has fallen thanks to technological advances, bringing solar generation closer to or on par with traditional electricity generation sources.

“The further increase of utility power prices and lower costs of entry into solar will only incent companies to consider solar power for their electricity needs,” TGC said.

Its portfolio to date, worth approximately $200 million, comprises more than 125 megawatts (MW) of assets in Vermont, Massachusetts, Rhode Island, New Jersey, Tennessee, California and Idaho.