The Carlyle Group has partnered with developer Alchemy Renewable Energy to form Cardinal Renewables, a joint venture which will develop, acquire, finance and operate solar projects in the U.S.
The private equity firm has committed $100 million in equity capital from its Renewable & Sustainable Energy Fund to the J.V.
Alchemy will provide asset management services, source tax equity financing and manage operations and maintenance for the projects acquired by Cardinal.
Based in Springfield, Mo., Alchemy has developed, financed and built renewable energy projects totaling more than 850 MW. It owns 38 projects in development or operation across eight states.
Tax equity ties
Alchemy syndicates tax equity financing for its projects through parent company Monarch Private Capital’s tax equity placement business. Monarch has placed over $1.5 billion of tax credits in various sectors since 2005. Through Alchemy, the firm has syndicated renewable energy investment tax credits totaling $377 million.
“Investing in differentiated and proven development platforms is a key focus of our strategy at Carlyle,” said Pooja Goyal, head of the firm's renewable and sustainable energy team and co-head its infrastructure group. “We’re confident that our combined capabilities will propel Cardinal Renewables’ growth and drive positive commercial and environmental outcomes.”
The legal advisers on the deal were:
- Vinson & Elkins for Carlyle, and
- Orrick for Alchemy.
Alchemy’s CEO Lacie Clark joined Monarch as a managing director in 2016 and co-founded Alchemy shortly after. Prior to joining Monarch, she served as chief operations officer at Gardner Capital and was an associate general counsel at Associated Electric Coop.
Jonathan Gross is CFO of Alchemy and also serves as director of business development for Monarch. He was previously a partner at CohnReznick Capital, where he led the renewable energy transaction advisory group out of Charlotte, N.C. He has also served as a partner at accountancy McKonly & Asbury and as a vice president at Pennsylvania wealth manager HJ Financial Group (now Meridian Wealth Partners).