True Green Capital Management LLC (“TGC”), an institutional asset manager specializing in distributed power generation, with a current focus on commercial photovoltaic solar, announced it has closed its latest discretionary fund, True Green Capital Fund III, L.P. (the “Fund”, “Fund III”). The Fund reached its hard cap of $350 million and was oversubscribed. The Fund’s Limited Partners include a diversified institutional investor base of leading endowments, foundations, investment advisors’ clients, fund-of-funds, family offices, and insurance companies.
“Solar technology has improved to the point where it is price competitive with traditional power generation infrastructure and provides energy consumers with power price certainty for decades to come. We are pleased that our institutional investor base has shown confidence in TGC and in an asset class that is both good for the environment and their investment portfolios,” said Bo Wiegand, Partner at TGC.
TGC seeks to deliver superior risk-adjusted returns and has developed a scalable, proprietary organizational and portfolio construction process that aims to combine the certainty of long-term fixed-price contracts with highly rated creditworthy partners augmented by the upside offered by power sales, environmental credits and real asset optionality. As part of this process, TGC has developed a privately negotiated pipeline of approximately $1.5 billion in projects.
To date, TGC has deployed approximately 30% of its Fund III capital in a portfolio of pre-identified projects, continuing its innovative investment strategy of self-originating, building and financing renewable energy electric power infrastructure projects. The existing investment portfolio consists of commercial and sub-utility scale solar power plants, including one of the largest roof-top installations in the world. The projects have contracted offtake agreements providing municipal utilities, military bases, universities, and corporate clients with clean, renewable energy at a fixed price. True Green Capital expects to deploy Fund III over the next 1-2 years across similar investment opportunities in the U.S.
About True Green Capital Management LLC
True Green Capital Management LLC is a specialized energy infrastructure asset management firm based in Westport, Connecticut with over $500 million in private equity capital under management. TGC has an operating portfolio of approximately 150MWs of distributed solar power generation assets across nine states including New Jersey, California, Massachusetts, Idaho, Rhode Island, Connecticut, New York, Tennessee, and Vermont. The firm was founded in 2011 and is led by a team of investment professionals with a proven investment track record and a demonstrated capacity to originate, finance, construct and operate infrastructure investments.
True Green Capital is currently focused on the approximately $2 trillion distributed power generation market with an emphasis on the sub utility scale solar power segment. Thanks to rapid advancements in technology, the cost of distributed power generation, including solar, is now on par with traditional electricity generation sources and in many U.S. states it represents one of the few sources of new power generation infrastructure that can be added to the power network quickly, reliably and cost efficiently. TGC believes the continued increase of power prices and decreasing entry costs of distributed power generation technology will continue to lead to compelling investment opportunities which provide a stable cash flow stream with little to no correlation to the broader markets.