A joint venture between JP Morgan Asset Management and an affiliate of New York-headquartered private investment firm Upper Bay Infrastructure Partners is providing financing for 8minutenergy Renewables’ 10 GW project pipeline.
Combined with a recent investment from 8minutenergy's founder and new ceo Tom Buttgenbach, who recently led a management buy-out of co-founder Martin Hermann’s shares in the company (PFR, 12/10), the capital from the joint venture provides 8minutenergy with more than $200 million in capital commitments.
Scotia Bank and Bank of America Merrill Lynch were lead financial advisers on the joint venture transaction, while Pillsbury Winthrop, Winston & Strawn, Orrick and Bracewell acted as legal counsel.
The developer's pipeline of utility-scale solar and solar-plus-storage projects is mostly concentrated in the heavily populated areas of the U.S. sunbelt, Buttgenbach tells PFR from Los Angeles.
“We’ve been very successful in our California home market as a developer of large-scale solar power plants,” he says. “The vision for our company is we will expand that both geographically in the Southeast and Southwest Texas.
"We will continue to grow the size of our power plants to maintain our competitive nature," he adds. "We will add storage technology into our power plants to serve our customers better over time.”
“We’ve been very impressed with the 8minutenergy team and their ability to deliver sustainable returns through their utility-scale solar projects,” said Michael Lehman, managing director and portfolio manager of JP Morgan Asset Management, in a statement. “8minutenergy has a premier development process that consistently delivers attractive solar projects with long term, contracted cash flows.”
JP Morgan Asset Management has some $1.8 trillion worth of assets under management.
8minutenergy also announced that Alex O’Cinneide, the founder and ceo of renewable energy and private equity firm Gore Street Capital, will rejoin the company’s advisory board. He first joined 8minutenergy's board as a non-executive director in August 2016, according to his profile on social networking site LinkedIn.
Based in Washington, D.C., Gore Street Capital manages both private and public investment vehicles, including the first energy storage listed fund on the London Stock Exchange—the Gore Street Energy Storage Fund.