Captona Closes Partnership with Scale Microgrids, Completing Preferred Equity Investment in Portfolio of Microgrid and Community Solar Projects

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Jun 17, 2024, 07:45 ET

NEW YORK, June 17, 2024 /PRNewswire/ -- Today, Captona and Scale Microgrids announce the closing and funding of a portfolio of community solar and microgrid assets in New York and California. This transaction demonstrates Captona's continued ability to execute on a wide array of energy transition investments.

This latest investment furthers the growth of Captona's preferred equity strategy and enables Scale, its partner, to optimize the value of their investment tax credits. Each party's deep expertise in renewable energy financing, as well as Scale's expertise in the operation of these projects, will enhance the value of Captona's strategic investment.

"Captona is thrilled to complete yet another investment through our rapidly expanding preferred equity strategy," said Izzet Bensusan, CEO and Founder of Captona. "This portfolio of microgrids and community solar projects provide reliable, sustainable energy solutions that enhance energy independence and grid resilience. As an energy transition investment firm, we find these asset classes to be a great fit within our existing portfolio of RNG, fuel cells, storage and solar."

"Captona's partnership helps Scale unlock value in this portfolio," said Julian Torres, Chief Investment Officer of Scale Microgrids, "Scale prides itself in delivering cheaper, cleaner and more resilient power to our customers and community stakeholders. By closing this transaction, we have been able to take full advantage of the new opportunities to monetize investment tax credits under Section 6418."

The projects, which leveraged Scale's vertically integrated platform to advance from development through construction and financing, have all been placed in service. Scale will also continue to own, operate and maintain the projects. They include a microgrid that will power a first of its kind off-grid cold storage facility, another microgrid that will provide energy savings and resiliency to a municipal water district in California, and community solar projects that will provide savings to New York utility customers. Captona's involvement underscores its commitment to supporting innovative energy solutions and expanding its diverse portfolio of renewable energy assets.

Kirkland & Ellis served as counsel for Captona and Allen Overy Shearman served as counsel for Scale Microgrids.

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 Scale Microgrids: Scale is a vertically-integrated energy company that designs, builds, finances, owns, and operates distributed energy assets that deliver cheaper, cleaner, and more resilient power. Our team accelerates growth in distributed energy by providing financing to project developers, while also directly helping large energy-consuming customers take charge of their energy supply with microgrids that integrate solar, batteries, and other on-site energy assets.

SOURCE Captona