NEW YORK--(BUSINESS WIRE)--CleanCapital, a leading independent power producer focused on distributed clean energy, announced today that it has acquired a portfolio of 40 assets totaling 22.7 megawatts (MW) from Kendall Sustainable Infrastructure (‘KSI’), one of the first established institutional owners of community solar projects. The acquisition marks a milestone for both companies and brings CleanCapital’s portfolio of operating and under-construction assets to more than 240 projects totaling over 340 MW—among the largest commercial solar portfolios in the U.S., according to Wood Mackenzie. The sale concluded the lifecycle of KSI’s first of three funds dedicated to the space.
Additionally, Manulife Investment Management (Manulife IM), together with its leading institutional co-investors, has increased its equity investment in CleanCapital with a new tranche of funding totaling $145 million. The co-investors come in alongside Manulife IM as contemplated when Manulife’s most recent commitment closed in 2023.
This latest investment reflects continued demand for clean energy infrastructure and further showcases CleanCapital’s appeal to the highest echelon of institutional investors. The funding accelerates CleanCapital’s investment in early-stage development—both through its in-house team and developer partnerships—and augments its reputation as one of the most respected acquirers and owner-operators of solar assets in the market. To date, CleanCapital has committed well over $1 billion to new build and operating solar and energy storage assets since Manulife IM’s initial investment in 2021.
“The growth of data centers and reshoring of manufacturing is driving up electricity demand at rates not seen in decades,” said Thomas Byrne, Chief Executive Officer of CleanCapital. “A rapid ramp-up of solar and energy storage installations is critical to meeting that need for businesses, communities, and consumers. This latest acquisition and infusion of capital shows that our team has the backing and track record to lead in this sector.”
“This latest investment demonstrates the confidence that Manulife IM has in this market opportunity and in CleanCapital’s ability to execute on it,” said Recep Kendircioglu, Global Head of Infrastructure, Manulife Investment Management. “Since our initial commitment three years ago, we have seen continued innovation from CleanCapital evidenced by its disciplined and forward-thinking investments that are growing the foundation for clean energy. We look forward to supporting the company’s expansion in both its asset base and pipeline across the U.S.”
The newly acquired Kendall solar portfolio consists of net-metering and community solar assets that reached commercial operation between 2015 and 2018. The solar assets serve a variety of offtakers, including MUSH, utility, C&I, and community solar subscribers. Of these, 38 are in Vermont, with the remaining two in New York and California—all states with progressive renewable energy policies bolstered by aggressive renewable energy generation targets.
“KSI was a first mover in this space identifying, financing and building this portfolio years ago," said John Chaimanis, Co-Founder and Managing Director of KSI. "We built our business on the principles of fair dealing, scaling through repetition, and deployment of top-quality equipment. We are grateful to our early investors who recognized our potential, and they are pleased with the outcome of this transaction."
"This acquisition underscores CleanCapital's commitment to scaling distributed clean energy solutions across the U.S.," said Julia Bell, Chief Investment Officer at CleanCapital. "The addition of these attractive assets strengthens our portfolio and enhances our ability to deliver reliable returns to our investors. Vermont’s commitment to sustainability and innovation makes it an ideal market to expand solar investments, delivering both economic benefits and measurable progress toward a cleaner energy future."
KSI's other Co-Founder and Managing Director, Ken Lehman, added: "We have been pleased with the many positive impacts we have created for our offtakers, host landowners and host communities, and our investors. We plan to continue to develop high quality projects like these for many years to come."
About CleanCapital
CleanCapital is a diversified clean energy company focused on the middle-market solar and storage industry. Mission-driven to mitigate the climate crisis, CleanCapital leads the energy transition with strategic investments in early-stage, new construction, and operating renewables projects and development partners. To date, the company has invested over $1 billion in projects and companies, including the acquisition of BQ Energy, a national leader in landfill and brownfield renewable energy development. For more information about CleanCapital, visit www.cleancapital.com.
About Manulife Wealth & Asset Management
As part of Manulife Financial Corporation, Manulife Wealth & Asset Management provides global investment, financial advice, and retirement plan services to 19 million individuals, institutions, and retirement plan members worldwide. Our mission is to make decisions easier and lives better by empowering people today to invest for a better tomorrow. As a committed partner to our clients and as a responsible steward of investor capital, we offer a heritage of risk management, deep expertise across public and private markets, and comprehensive retirement plan services. We seek to provide better investment and impact outcomes and to help people confidently save and invest for a more secure financial future. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.
About Kendall Sustainable Infrastructure
Kendall Sustainable Infrastructure, LLC (“KSI”) is dedicated to building and owning sustainable, long-lived assets, including solar, water, and other infrastructure projects. We believe that changing the way that people get electricity and manage water can be done more resiliently and cleanly. Doing this improves the quality of life for all of us. We believe that by empowering local companies through the provision of finance and a problem solving mindset that we can deliver these very heavily demanded solutions. The local companies that we empower will grow, their communities will grow stronger, and we can produce attractive returns to our investors. As of today, the company has completed over 80 distributed infrastructure transactions deploying approximately $500M of capital. KSI provides capital to local developers and EPC contractors during development and at project takeout with the ultimate goal of ownership. Investments range from $500k to $20M per project. For more information about collaborating on projects or our investment program, please visit https://www.kendallsustainableinfrastructure.com.
