NEW ORLEANS, Jan. 5, 2022 /PRNewswire/ -- PosiGen, the nation's leading provider of renewable energy and efficiency solutions for low-to-moderate income (LMI) households, is pleased to announce the close of a $100 million preferred equity financing. Magnetar Capital's Energy & Infrastructure group was the lead investor in the financing and will nominate two new directors to join PosiGen's Board of Directors. Existing PosiGen investors, including Emerson Collective, Irradiant Partners, Activate Capital, The Builders Fund, SJF Ventures, and The Kresge Foundation, also participated in the financing.
This transaction provides significant growth capital for PosiGen to accelerate its efforts to close the clean energy affordability gap for LMI homeowners by delivering lower cost utility bills and the environmental benefits of clean energy through residential solar, storage and energy efficiency upgrades. PosiGen has served over 19,000 customers to date, with approximately 50% of that in communities of color, and is now positioned to rapidly scale. The company's mission is to make solar available to everyone, regardless of income or credit score.
The growth capital will provide momentum to PosiGen's expansion efforts, fuel development across new states, and support investments in the company's core technology infrastructure. With its best-in-class product, focus on delivering value to customers with high energy burdens, and impact-oriented approach to serving households and communities previously excluded from the movement towards clean energy adoption, PosiGen is now well positioned to deliver on its promise of Solar for All.
"Working with the Magnetar team to structure this transaction has reinforced our view that partnering with the right lead investor with extensive experience and strong relationships matters," said Tom Neyhart, CEO of PosiGen. "As a company, we believe that serving LMI customers who will benefit the most from our solar plus energy efficiency offerings creates a virtuous cycle of value – making a difference in the lives and communities of the families we serve, while at the same time driving customer engagement and portfolio performance. Magnetar not only recognizes this market opportunity, but also has the knowledge and experience to help us bring it to scale. We are excited to partner with them to grow the PosiGen platform at a national level to achieve our shared vision."
"We are excited to partner with the PosiGen team to support the company's future growth and extend its leading market share in the LMI residential solar ecosystem," said Eric Scheyer, Head of Energy and Infrastructure at Magnetar. "The opportunity to scale PosiGen's operations into many underserved markets in the United States is significant. We look forward to working closely with the PosiGen management team and its Board of Directors to help them create value for PosiGen's constituents and achieve PosiGen's growth objectives in its solar and storage segments."
"The company's Board of Directors is very pleased to welcome Magnetar Capital to help accelerate PosiGen's momentum as we expand our footprint throughout the country," said Mark Bruinooge, Chief Investment Officer of the 2040 Fund and Chairman of the company's Board of Directors. "PosiGen is a stronger company with Magnetar as a strategic partner, given its proven track record in energy and infrastructure growth investing."
Wilson, Sonsini, Goodrich & Rosati is serving as legal advisor to PosiGen, and Kirkland & Ellis LLP is serving as legal advisor to Magnetar. The transaction was facilitated by Marathon Capital, an independent investment bank delivering financial advice to the clean energy, sustainable technologies, and infrastructure markets. PLEXUS Solutions provided diligence support to Magnetar and will continue to provide ongoing performance monitoring for PosiGen's asset financing.
Headquartered in New Orleans, LA, PosiGen is the nation's leading residential solar, energy efficiency and energy education providers for low-to-moderate income families. PosiGen has more than 19,000 residential customers, over 460 direct employees and supports more than 150 employees through its contractors in Louisiana, Mississippi, Connecticut, New Jersey, Pennsylvania, New York, and Florida. PosiGen's unique services and products make solar energy affordable to homeowners of all income levels, and offer individuals, families and businesses the opportunity to achieve greater fiscal autonomy and energy independence by lowering their utility bills. To learn more about PosiGen, please visit www.posigen.com.
About Magnetar Capital:
Founded in 2005, Magnetar is a leading alternative asset manager with approximately $13.5 billion in assets under management as of September 30, 2021. Magnetar's Energy and Infrastructure Group has actively invested in the North American energy and infrastructure sector for over 15 years and has committed over $6 billion across more than 60 private energy, infrastructure, and renewables investments. The firm is based in Evanston, Illinois and has additional offices in Houston and London.
SOURCE PosiGen Solar Energy and Energy Efficiency