Captona and UBS Asset Management Close Joint Venture with Innovative Structure for 728MW/1.06GWh Battery Storage Portfolio

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May 01, 2024, 07:45 ET

NEW YORK, May 1, 2024 /PRNewswire/ -- Today, Captona and UBS Asset Management's Real Estate & Private Markets business announce the closing of an investment in a portfolio of four utility-scale battery energy storage ("BESS") projects in Texas. Previously acquired by UBS Asset Management, the projects total 728 MW and 1.06 GWh. This transaction is the latest demonstration of Captona's energy transition financing capabilities, and UBS Asset Management's capital optimization strengths.

This preferred equity investment assists UBS Asset Management in optimizing the value of their tax credits without the need for a traditional tax equity partnership. The transaction builds on each party's expertise financing clean energy projects, demonstrates the benefit of Captona's preferred equity investment strategy, and showcases UBS Asset Management's comprehensive development of the energy storage projects.

"Captona is proud to complete this transaction and grow our energy transition business," said Izzet Bensusan, CEO and Founder of Captona. "This portfolio of BESS projects is critical to maximizing the potential of renewable energy projects while also ensuring grid reliability as energy demand grows. We are excited to continue investing and originating opportunities in clean energy projects and add to our growing portfolio of solar, BESS, fuel cell, and clean fuels projects."

"This transaction marks an important step in the advancement of this portfolio," said Mark Saunders, co-head of Energy Storage Infrastructure, UBS Asset Management "and is the latest in a series of innovative approaches we have developed to maximize value through each step of our projects' lifecycle."

The projects range from 100-300MW in nameplate capacity and are slated to come online in 2024. Kirkland & Ellis served as counsel for Captona and its equity partner. Troutman Pepper served as counsel for UBS Asset Management.

About Captona
Captona is a leading North America-focused investment company dedicated to the Energy Transition and Decarbonization. With a focus on solar, storage, fuel cell, and RNG assets, Captona pioneers innovative investment strategies that align financial returns with positive environmental impact. Headquartered in New York City, Captona manages $2 billion in enterprise value, owning and operating more than 30 projects across North America. Captona's diverse portfolio of energy transition assets and strategic partnerships empower businesses and communities to embrace clean energy, driving us towards a sustainable future.

About UBS Asset Management
UBS Asset Management is a large-scale asset manager with a presence in 23 markets. It offers investment capabilities and investment styles across all major traditional and alternative asset classes to institutions, wholesale intermediaries and wealth management clients around the world. It is a leading fund house in Europe, the largest mutual fund manager in Switzerland, the second largest fund of hedge funds manager and one of the largest real estate investment managers in the world.

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SOURCE Captona