Marathon Capital, LLC (“Marathon”) is pleased to announce that IGS Solar and a private equity fund managed by Ares EIF, the power and energy infrastructure strategy within Ares Management, L.P. (NYSE: ARES), have closed an approximately $145 million tax equity capital partnership with an undisclosed tax equity investor to finance solar generation assets for homeowners throughout the United States.
This partnership is expected to deploy an initial portfolio of approximately 4,000 residential solar power purchase agreements (PPAs) in the northeastern United States. Marathon acted as exclusive financial advisor to IGS Solar in arranging the equity capital commitment from Ares EIF and the partnership’s tax equity capital commitment.
IGS Solar is the solar development affiliate of IGS Energy, one of the largest independent retail electricity and gas providers in the United States. IGS Solar leverages IGS Energy’s best-in-class operations platform, over one million existing customer relationships and financial strength to arrange project financing and provide asset management services for contractors who sell and install residential solar systems.
Ares EIF targets private equity investments across the U.S. power generation, transmission and midstream sectors. Ares EIF’s more than 30-year track record in energy investing helps IGS Solar to provide an attractive PPA financing option that enables homeowners to install solar systems that generate immediate savings on utility bills at no cost to the customer.
“Ares EIF is a very sophisticated and knowledgeable partner in the energy markets, and we look forward to working with them on this and other opportunities as the energy landscape evolves,” stated Scott White, President and CEO of IGS Solar.
“Residential solar is a natural extension of our investment strategy, and we are pleased to have found a partner that shares our vision for a best-in-class residential solar platform,” said Andrew Schroeder, Partner at Ares EIF. “We are excited about the opportunity to align with an experienced and talented management team to grow IGS Solar and expand our relationship with IGS Energy, which we view as a model for a 21st century power and energy platform.”
Marathon’s extensive experience arranging equity capital partnerships in the distributed solar sector helped IGS Solar identify Ares EIF as a great partner to grow its residential solar platform. “We are very pleased to have brought two excellent teams together and are extremely optimistic about the future prospects of the partnership,” said Gary Greenblatt, Managing Director at Marathon. “With support from Ares, IGS Solar is well-positioned to be the first formidable new entrant in residential solar financing space in several years.”
About Marathon Capital
Marathon Capital is a leading financial advisory and investment banking firm focused on providing financial advice in the areas of M&A, capital raising of debt and equity, project finance, tax equity, financial restructuring, recapitalization, bankruptcy and workout situations in the energy sector. Marathon Capital is a four-time recipient of the "Best Renewable Asset M&A Advisor" Award (2013, 2014, 2016, 2017), "Renewable Generating Project Finance Deal of the Year" Award (2016) and first-time recipient of the "Best Asset M&A Advisor (2017) in Power Finance & Risk's Annual Power Finance Deals and Firms Awards.
Ares Management, L.P. is a publicly traded, leading global alternative asset manager with approximately $112.5 billion of assets under management as of March 31, 2018 and 18 offices in the United States, Europe, Asia and Australia. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its three distinct but complementary investment groups in Credit, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole. For more information, visit www.aresmgmt.com.
Ares EIF is the power and energy infrastructure strategy within Ares’ Private Equity Group, with a 31-year track record of investing in assets and companies in the power generation, transmission and midstream sectors. Since inception, Ares EIF-managed funds have made approximately 70 equity investments in nearly 130 different power and energy infrastructure assets with a combined underlying enterprise value exceeding $20 billion. During the last 15 years, Ares EIF has invested in nearly 9,000 MW of greenfield generation and transmission projects, as well as 200 miles of greenfield pipeline projects, representing over $11 billion of capital costs.
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About IGS Solar
IGS Solar, a turn-key commercial and residential solar provider with significant solar assets under development, provides businesses, homes, and communities with an opportunity to participate in creating a sustainable energy future with no upfront investment. As an affiliate of IGS Energy, IGS Solar is dedicated to delivering innovative solar energy solutions. For more information, visit IGSsolarpower.com. Connect with IGS Solar on LinkedIn.
Media Contact: Kerri Ward, IGS Solar, firstname.lastname@example.org