True Green Raises $350 Million for Commercial, Industrial Solar

By Brian Eckhouse

True Green Capital Management LLC, an infrastructure asset management firm with more than $500 million under management, raised $350 million for commercial and industrial solar investments.

The Westport, Connecticut-based asset manager closed True Green Capital Fund III on June 30, Managing Partner Panos Ninios said in an interview. The fund was oversubscribed, attracting endowments, foundations, fund-of-funds, family offices and insurance companies. It also attracted more capital than True Green’s two previous solar-focused funds, which together raised $223.4 million.

“It actually tracks pretty well with the growth of the solar power-plant market,” Ninios said. “Institutional investors have become familiar with the asset class. It’s not middle of the fairway, but it’s getting close.”

Patricia Ter Heun, a Sausalito, California-based principal at Strategic Marketing Solutions Ltd., advised True Green on the capital raising. True Green has already deployed about 30 percent of capital from its third fund.

Institutional investors, including insurers, like clean-energy assets that have long-term revenue streams that dovetail their long-dated liabilities. For endowments, solar investments can help satisfy sustainable targets.

True Green has investments in more than 35 projects, including military housing, comprising more than 150 megawatts of projects. Some are operating assets, others are under construction. It recently commissioned a 16.5-megawatt rooftop solar project for the Los Angeles Department of Water and Power.

The asset manager expects to invest in similar projects with its latest fund. “It’s more military housing, more LADWP-type projects,” Ninios said. “We think it offers the best risk-return characteristics.”

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