CleanFund raises $15M equity from Vulcan Capital
CleanFund Commercial Capital, a leading provider of Property Assessed Clean Energy financing for commercial buildings, has raised $15 million of equity from a group of investors led by Vulcan Capital, the investment arm of Microsoft co-founder Paul G. Allen.
Vulcan Capital has also committed $100 million of funding to help CleanFund warehouse additional PACE assets that will eventually be securitized.
The founders of CleanFund teamed up in 2008 to create the first legislation enabling the use of property tax assessments to finance energy efficient upgrades in California. Since forming in 2009, CleanFund's growth has doubled year-over-year, financing some $125 million, or about 25% of all C-PACE transactions across the U.S.
The company previously raised $4 million of equity in 2015; prior funding came from angel investors. Management, employees and former employees still own about half of the company.
The latest capital raise will allow the CleanFund to continue meeting commercial property owners' demand for long-term capital to make vital upgrades to their properties, which has now been legislatively approved in 34 states.
CEO Greg Saunders said the company remains committed to securitizing its PACE assets in order to drive down the cost of financing for its clients. Bundling the assets into collateral for bonds would also provide CleanFund with better matched funding for liens that can last 20 years.
"For Vulcan Capital, CleanFund's contribution to the advancement of sustainable real estate nationwide makes it the perfect combination of shared vision and investment opportunity," said Ben Kolpa, managing director, Vulcan Capital.
"It's important to back leading companies that can deliver innovative solutions for property owners seeking to lower their operating expenses and carbon footprint