Company plans to accelerate commercial and residential PACE in California and new markets
(San Diego: March 28, 2016) – Figtree Financing announced today that it has raised $30 million from an institutional investor to expand its fast-growing PACE clean energy financing business. This Series A capital round will fund the launch of a residential PACE financing program and accelerate its commercial PACE financing platform within and outside of California.
“This is an incredibly exciting time for PACE and our company, thanks to renewed focus from the federal government on establishing residential guidelines and the emergence of new commercial programs in Colorado, Virginia, Maryland, Missouri, and elsewhere,” said Mahesh Shah, CEO of Figtree Financing. “PACE and Figtree Financing are a terrific example of a public-private partnership creating an innovative lending product to address a gap in energy financing for homes and businesses.”
PACE financing allows property owners to access long-term financing that they repay through their property taxes. PACE was created by the state of California as an alternative financing option so that home or business owners no longer have to use their own personal or business credit to implement energy- and water-saving upgrades. It offers a unique credit profile, fast underwriting, and requires no down payment or cash outlay. Figtree Financing’s new technology platform approves homeowners for financing instantly online and integrates seamlessly into its partners’ systems.
Private equity firm LL Funds led the equity investment. LL Funds is a private investment firm based in Philadelphia whose principals have deep experience in asset-backed-securities as well as consumer finance and have been actively participating in the emerging PACE sector.
“Home and business owners have few options today to finance energy upgrades. Most low-cost financing has been limited to those with the highest credit. PACE is a cost-effective, efficient financing option for homeowners and commercial property owners that allows capital markets to support the industry with low-cost, long-term capital. We see a great opportunity to bring PACE financing to a national level,” said Roberto Sella, Managing Partner of LL Funds.
PACE supports a broad range of property improvements, including solar, heating and air conditioning, and windows, along with water efficiency and seismic retrofits in higher-risk earthquake regions like California. The financing creates a meaningful long-term solution to climate change and carbon emissions that concern governments, businesses and individuals.
“Figtree Financing has demonstrated the power of public-private partnerships in their implementation of new financing options that accelerate sustainability,” said Gurbax Sahota, Chair of the Board of Directors for the California Enterprise Development Authority (CEDA), a joint powers authority for which Figtree Financing administers the PACE program. “Mahesh and his team have been wonderful partners to CEDA, and we look forward to working with Figtree Financing on the current PACE program as well as the next generation of energy efficiency financing programs and products.”
About Figtree Financing
Figtree Financing provides innovative financing to accelerate the adoption of environmentally friendly products and services. We believe every home and commercial property should have the latest energy saving improvements to reduce our carbon footprint. Our unique Property Assessed Clean Energy (PACE) financing provides property owners with funds to install energy efficiency, renewable energy and water conservation upgrades that is repaid on their property tax bills. Nationally, PACE has surpassed $1 Billion in funding in just five years, and is expected to double in 2016. Learn more by calling 1-877-577-7373 or visit us at www.figtreefinancing.com.