US residential solar financing firm Sungage Financial and global investment powerhouse Carlyle have unveiled a strategic partnership, featuring a forward flow agreement and equity investment.
🤔 But what is a forward flow agreement?
This deal allows an investor to purchase a set of loans originated by another party, condensing the capital cycle by getting all of those proceeds ahead of time, thereby reducing the strain on the business.
💼 Deal Highlights:
– Sungage will sell newly issued residential solar loans to Carlyle, raising ~$450mn.
– Equity Investment: Carlyle has also invested in Sungage.
📈 Financial Strengthening:
– Balance Sheet Boost: This partnership enhances Sungage’s financial position.
– Innovative Packages: It enables Sungage to offer competitive, fixed-rate loans for terms ranging from 5 to 25 years.
📊 Innovative Financing Strategies in Residential Solar:
– SunPower: Partnered with HASI and Credit Agricole to offload credit risk.
– Sunrun: Issued asset-backed securities, collateralizing 1.8 GW of capacity to raise capital.
– Vivint Solar: Used forward flow agreements to reduce debt and increase cash flow.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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