Figtree Financing raises $30 million to launch residential PACE program
Written By: Stratton Report
March 28, 2016
On March 28, Figtree Financing announced raising $30 million from an institutional investor to expand its 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.
Private equity firm LL Funds led the equity investment. The firm has experience in asset-backed-securities as well as consumer finance and has been active in the 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.
Mahesh Shah, CEO of Figtree Financing noted:
“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. 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.”
Figtree Financing’s new technology platform evaluates homeowners for financing online and can integrate into its partners’ systems.
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.
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, commented: “Figtree Financing has demonstrated the power of public-private partnerships in their implementation of new financing options that accelerate sustainability,” said “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.”