TGC gathers over $660m for fourth fund

True Green Capital Management has closed its fourth fund at over $660 million. Fund IV’s backers include U.S. public and corporate pension plans, a Dutch pension plan, U.S. and UK insurance companies, endowments, foundations, global asset managers, wealth managers, fund-of funds, and family offices. TGC invests in in distributed, commercial and industrial (“C&I”) solar power generation projects, batteries, and microgrids in the U.S. Morgan, Lewis & Bockius LLP served as legal advisor. Based in Westport, Connecticut, TGC is a specialized renewable energy infrastructure private equity firm.

PRESS RELEASE

WESTPORT, Conn., June 6, 2022 /PRNewswire/ — True Green Capital Management LLC (“TGC”), a renewable energy infrastructure private equity fund manager, announced the final close of True Green Capital Fund IV, L.P. (the “Fund”, “Fund IV”) with capital commitments of $660,875,000.
The Fund’s Limited Partners include a group of bellwether investors from primary segments of the institutional market, including U.S. public and corporate pension plans, a Dutch pension plan, U.S. and UK insurance companies, endowments, foundations, global asset managers, wealth managers, fund-of funds, and family offices.

With an 11-year track record, TGC invests in distributed, commercial and industrial (“C&I”) solar power generation projects, batteries, and microgrids in the U.S., with an increasing focus in the UK and the European Union. Since 2011, TGC has deployed over $1.2 billion of total capital representing an ~520 MW portfolio across 14 U.S. states. TGC’s 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.

TGC seeks to deliver superior risk-adjusted returns that are largely uncorrelated to the broader markets by combining three core elements to create value: first, its direct operating capabilities aim to lower costs and increase functional efficiency in construction and asset management; second, TGC’s origination and execution strategy targets key markets to identify and solve constraints to seek competitive advantage; and, third, TGC’s portfolio construction framework aims to protect portfolio downside and maximizes upside potential by combining the certainty of long-term, fixed-price power purchase agreements with creditworthy counterparties, alongside the inflation hedging properties of electricity and environmental commodities.

“With the close of Fund IV, we will continue to execute our proven strategy of investing in distributed power generation assets that provide a reliable income stream, in key markets where we can build competitive advantage. The Fund will follow on the success of its predecessor Fund III, which closed in 2017 at ~$352 million and is now fully invested, and will offer institutional investors the opportunity to participate in the C&I solar power generation market, one of the most complex but also potentially more profitable segments of the U.S. and European solar markets,” said Dr. Panos Ninios, Co-Founder & Managing Partner of TGC.

Bo Wiegand, Co-Founder and Partner, added, “We appreciate the strong support and confidence of our investor base, and we are committed to helping them achieve their investment and sustainability goals. Our strategy has proven to be a diversifier for investors and has demonstrated resiliency across market cycles. We believe Fund IV will benefit from industry dynamics and continued tailwinds in the sector.”

Morgan, Lewis & Bockius LLP served as legal advisor.

About True Green Capital Management LLC
TGC is a specialized renewable energy infrastructure private equity firm based in Westport, Connecticut. Having developed the capabilities of a direct operating business, TGC has raised four private equity funds and invested into distributed solar power generation portfolios across 14 U.S. states delivering clean, reliable renewable energy with an increasing focus in the UK and the European Union. The firm was founded in July 2011 and is led by a team of investment professionals with a proven track record and the demonstrated capacity to originate, finance, construct, and operate distributed renewable power generation projects at institutional scale.