- Aligned Solar Partners 6 LP was oversubscribed at more than $240 million with commitments from global institutional investors, including insurance companies, endowments, foundations, and family offices.
- The Fund has developed five projects to date and is targeting more than 150 MW across seven states, effectively doubling its total capacity under this strategy.
NEW YORK–(BUSINESS WIRE)–As demand for clean, reliable energy continues to rise across the U.S., Aligned Climate Capital (Aligned) today announced the final close of its sixth distributed solar fund, Aligned Solar Partners 6 LP (ASP6), with commitments above the $200 million target fund size. ASP6 achieved final close with participation from leading institutional investors in the U.S. and globally, including insurance companies, endowments, foundations, and family offices.
Aligned has been investing in the distributed solar market since 2018, and this Fund represents its largest investment partnership to date. Aligned has achieved strong financial returns in this strategy to date, with significant realized returns to investors and consistent annual cash distributions. ASP6 acquires construction-ready distributed solar projects from development partners across the U.S., finances their build-out, and delivers returns through tax credit monetization, operating income distributions, and portfolio sales to institutional infrastructure investors.
“The U.S. needs new power generation to meet growing electricity demand, and solar energy is the cheapest, fastest, and cleanest technology in the market,” said Peter W. Davidson, CEO of Aligned Climate Capital. “We have been investors in this market for more than a decade and understand how solar can deliver consistent cash returns for our investors each year.”
Aligned Solar Partners (ASP) is Aligned’s primary infrastructure strategy, which has been investing capital in the «middle market» of solar since 2018. To date, the firm owns and operates more than 65 MWdc of projects across seven states. It has consistently targeted underserved and rural markets, which it believes have unique advantages. It finances construction with a combination of equity and construction debt, then monetizes the tax credits and secures long-term, low-cost permanent debt. Aligned has placed construction debt with Seminole Financial Services for this portfolio and prior ASP funds.
“We value our ongoing relationship with Aligned Climate Capital and are pleased to support ASP6 as a construction lender,” said Joe Ritter, principal of Seminole Financial Services. “This portfolio reflects the kind of thoughtful, well-structured projects Seminole looks to finance. These are investments with strong fundamentals that also deliver meaningful impact in the communities they serve.”
Aligned acquires solar projects ranging from 1 MWac to 10 MWac from development partners across the U.S. Many of these developers have collaborated with Aligned on multiple successful projects over the years. The firm prioritizes development partners with a consistent track record of delivering financially viable, construction-ready assets. One such partner, Rewild Renewables, developed two of the Fund’s current projects in Delaware.
“In this unstable market, it’s good to have partners like Aligned who not only commit to building solar projects but deliver on that promise,” said Pat Jackson, co-founder and managing member of ReWild Renewables. “We’re proud to help Aligned grow their distributed solar portfolio and deliver meaningful, low-cost, clean energy projects to the grid.”
ASP6 has already placed more than 25MW of distributed solar projects in service in Maine and Washington, D.C. The Fund has also acquired additional solar projects in other states, which are under construction or scheduled to begin over the next two years, with the majority of the Fund’s capital committed to these assets. ASP6 is scheduled to make its initial cash distribution to investors in 2025 and plans to make annual cash distributions going forward, before ultimately selling the operating portfolio to institutional investors following the tax recapture period.
For more information on Aligned Climate Capital, visit https://www.alignedclimatecapital.com/.
About Aligned Climate Capital
Aligned Climate Capital LLC is an asset manager investing exclusively in the companies and projects driving the clean energy transition. Founded in 2019, Aligned currently manages approximately $2 billion of assets (as of 12/31/24). The firm’s senior leadership team brings decades of climate and clean energy experience across finance, energy markets, and government.
Aligned has two primary investment strategies: the Aligned Climate Fund, which provides capital to venture-stage companies deploying and scaling established clean energy solutions, and Aligned Solar Partners, which owns and operates distributed solar, energy storage, and other clean energy projects.
For more information, visit AlignedClimateCapital.com.
Contacts
Technica Communications
Jamie Corter
[email protected]
