Intersect Power Announces $750 Million Growth Equity Investment from TPG Rise Climate, CAI Investments and Trilantic Energy Partners North America
Investment will provide significant capital to accelerate the construction of Intersect Power’s clean energy platform, from the current 2.4 GW to 8 GW+ portfolio of renewable power generation, storage and hydrogen generation
TPG Rise Climate joins existing investments from CAI, Trilantic and Intersect Power Management to open new paths between clean electricity and the wider economy
Investment in growth stocks signals commitment to new products and scalability that are core to Intersect Power’s business
SAN FRANCISCO, June 28, 2022 /PRNewswire/ — Intersect Power, LLC, (“Intersect Power” or the “Company”) today announced a $750 million growth capital investment led by TPG Rise Climate, the dedicated climate investment strategy of TPG’s global impact investing platform, TPG Rise, with additional participation from existing investors, Climate Adaptive Infrastructure, LLC. (“CAI”) and Trilantic Energy Partners North America (“Trilantic”). This strategic partnership and investment will accelerate Intersect Power’s continued progress in implementing its vision to enable bridges between clean electricity and the broader economy.
This growth capital investment will provide significant capital to scale Intersect Power’s business, including the company’s renewable energy portfolio and new product pipeline in the growing clean energy sector. This investment supports the company’s differentiated focus on shorter duration off-take contracts combined with large-scale battery storage and new products, such as green hydrogen, allowing it to benefit from the risk profile and superior yield created by rising global energy and clean commodity prices.
“Our partnership with TPG Rise Climate, CAI and Trilantic further fuels our collective quest to accelerate the deep decarbonization of our economystrengthen America’s energy security and deploy the billions of dollars in sustainable assets needed to solve the climate crisis,” said Sheldon Kimber, CEO of Intersect Power. “The bridge between vision and progress is achieved through the continued construction of clean energy solutions and our team is more motivated than ever to fight climate change with gigawatts of real assets in the ground.”
With recent supply chain disruptions in the US clean energy market, rising capital costs and regulatory uncertainties, this investment further strengthens the sustainability of Intersect Power’s core business. The company’s focus on shorter-term contracts, differentiated financing structures and national supply chains has placed Intersect Power in a unique position to continue to reliably deliver the lowest carbon solutions. more scalable and innovative for customers in the wholesale and retail energy markets, including a growing number of emerging customers for clean feedstocks, such as green hydrogen and e-fuels.
“Intersect’s proven delivery of large, scalable clean energy projects and a differentiated business model positions the company to lead the way into new markets and clean energy products, as our economy continues to decarbonize,” said Ed Beckley, a partner at TPG and a senior member of its climate investment team. “Energy demand will continue to rise as we accelerate the electrification of our economy. We are delighted to support the work of the company in delivering innovative clean energy solutions to the grid and industrial sectors of our economy,” added Steven MandelBusiness Unit Partner at TPG Rise.
As part of the investment, Beckley, Mandel and Maryanne HancockCEO of TPG’s Y Analytics, will represent TPG Rise Climate on the Intersect Power Board, alongside green bill of CAI and Glenn Jacobson of Greenbelt Capital Partners.
“We are proud to continue our support of Intersect Power and to join the team in celebrating another impressive fundraising milestone for the company. As an investor and ardent supporter of the team’s work since the creation of Intersect, we have been consistently reaffirmed in our support by their proven track record,” said green bill, Founder and Managing Partner at Climate Adaptive Infrastructure. “From shorter-term contracts to REC unbundling to US module sourcing, the team has always been ahead of the market in accelerating the adoption and impact of clean energy products that are the solution to the climate crisis.”
This investment will support Intersect Power’s accelerated entry into new markets and technologies, including nearly 1 GW of green hydrogen production, and the further development of its mid-to-late-stage portfolio totaling 8.5+ GWp and 8+ GWh through United States. The Company currently has 2.2 GWp of solar PV and 1.4 GWh of co-located storage currently under construction which will be operational by 2023.
BofA Securities acted as financial advisor to Intersect Power on the transaction and Orrick, Herrington & Sutcliffe LLP acted as legal advisor. PJT Partners acted as financial advisor to TPG on the transaction and Kirkland & Ellis acted as legal advisor.
Intersect Power is a clean energy company that provides innovative and scalable low carbon solutions to its customers in the retail and wholesale energy markets. The company develops some of the world’s largest clean energy resources by providing low-carbon electricity, fuels and related products to customers across North America. Intersect Power has an 8.5+ GWp and 8+ GWh mid-to-late stage pipeline that includes a core portfolio of 2.2 GWp solar PV and 1.4 GWh co-located storage that will be operational from by 2023. The Intersect team also predicts nearly 1 GW of green hydrogen production. To learn more about Intersect Power, visit www.intersectpower.com.
TPG Rise Climate is the dedicated climate investment strategy of TPG’s global impact investing platform, TPG Rise. TPG Rise Climate pursues climate-related investments that benefit from the diverse skill sets of TPG’s investment professionals, the strategic relationships developed across TPG’s existing portfolio of climate-focused companies, and a global network of executives and advisers. The fund takes a sector-wide approach to investment types, from growth stocks to value-added infrastructure, and focuses on climate solutions in the following thematic areas: clean electrons, clean molecules and materials, and negative emissions. Jim Coulter, founding partner and executive chairman of TPG, is managing partner of TPG Rise Climate. Former U.S. Treasury Secretary Hank Paulson serves as Executive Chairman of TPG Rise Climate. For more information, please visit www.therisefund.com/tpgriseclimate.
Climate Adaptive Infrastructure, LLC (“CAI”) is an infrastructure investment firm specializing in low-carbon real estate assets in the energy, water and transportation sectors. The company seeks investments in core infrastructure assets that improve the sustainability and quality of life for a large and growing global population. CAI selects, finances, constructs and manages its investments using climate screens and metrics designed to improve investment returns and reduce carbon emissions.
Trilantic Capital Management LP (“Trilantic North America”) is a growth-oriented, middle-market private equity firm focused on controlling and significant minority investments in North America. Trilantic North America focuses on investments in the business services and consumer sectors. Greenbelt Capital Partners is a growth-oriented, middle-market private equity firm focused on controlling and large minority investments ranging from late-stage growth capital to private equity to infrastructure development in the construction industry. energy. The Greenbelt investment team recently spun off from Trilantic North America and continues to serve as an advisor to Trilantic North America and its managed funds. The senior Greenbelt team has committed approximately $4.6 billion of equity to several portfolio companies and consumed more than $58 billion mergers and acquisitions and financings in more than 210 transactions across the portfolio. For more information, visit www.greenbeltcapital.com
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