Capital dynamics, an international asset managing company announced July 10 that it completed its $282 million US Solar Energy Fund. The fund will allow the company to invest in U.S.-based solar projects across the country on behalf of its investors. It’s the first time the company has created a solar fund.
Through the fund Capital Dynamics already has already invested in a significant amount of commercial projects including rooftop solar installations across the U.S., in states including Massachusetts, New Jersey, Pennsylvania and California. “We’ve got 50 right now that we’ve committed capital to that are identified. By the time we’re done it should be between 75 to 100,” said David Scaysbrook, managing director of Capital Dynamics’ Clean Energy and Infrastructure team.
Thus far the company has bought all the projects its invested in outright, according to Scaysbrook. While Capital Dynamics hasn’t partnered with other investors, it has partnered with project developers. “So far we don’t have any joint ownership projects. We don’t use any debt capital. We’re a pure cash investor.” That’s allowing the company the ability to leverage the investment to more than $500 million, he said.
Capital Dynamics engaged more than 15 global institutional investors for the fund. Investors in the fund hail from the U.S., U.K., Australia, Germany, Korea and Japan. The fund also is supported by high net worth individuals and family offices. The fund is made up of pension fund investors and levelizes retirement assets, according to Scaysbrook. It offers low-risk, long-term investment-grade returns in excess of 10 percent.
Capital Dynamics chose the U.S. as its first target for a solar fund about two years ago, according to Scaysbrook. The market is attractive because The Fund is typically investing in projects with 20-year power purchase agreements with investment-grade utilities and corporations.
While its the first time the company has created solar fund, its supported clean energy projects across the world, including in Australia and Europe. MOre funds could come soon. “We’re got our investment program running where we’re looking at PV and other clean energy like landfill recovery,” Scaysbrook said. “We’re looking at PV in the U.K. and Australia. Those are the two other markets right now, as well as Japan,” he said.