EnerTech Capital has partnered with Pivotal Funds to form EnerTech Specialty Finance, a specialty finance vehicle that will target opportunities in the U.S. property assessed clean energy (PACE) market. The legislation-enabled PACE program helps commercial real estate owners secure private funding for renewable energy, energy efficiency and water conservation projects. The EnerTech PACE offering, managed by Pivotal’s Howard Steinberg and Jonathan Globerman, will support a range of these projects. EnerTech, which has offices in Calgary, Montréal, Toronto and the United States, invests in energy and power technology companies.
EnerTech Capital and Pivotal Funds form a Specialty Finance Partnership
November 13th, 2017 Toronto, Ontario – EnerTech Capital (“EnerTech”) is pleased to announce today that it has forged a partnership with Pivotal Funds based in Delray Beach Florida to form a new funding vehicle to be known as EnerTech Specialty Finance. As part of EnerTech’s broad strategy in energy technology, the new partnership has launched a program in the PACE market, with an exclusive focus on commercial, industrial and institutional (CII) properties. The program will be managed on a daily basis by experienced investors, Howard Steinberg and Jonathan Globerman.
The PACE Program in the U.S is an innovative financing approach that allows owners of Commercial properties to obtain long-term, low-cost financing for renewable energy, energy efficiency, and water conservation projects. Many viable projects stall because the upfront capital cost is deemed prohibitive by the customer and/or the various terms and requirements of traditional versions of project funding make the project unattractive. The EnerTech PACE offering will enable many of these types of projects to proceed for the benefit of all parties involved.
PACE legislation enables counties or municipalities to work with private capital suppliers to offer financing to CII property owners for eligible improvement projects, and to receive repayment through annual assessments on the property’s tax bill. In some jurisdictions, financing terms through PACE can extend up to 30 years, and result in annual cost savings that generally exceed the amount of the assessment payment. PACE legislation for CII properties has been passed in more than 1,000 municipalities across 32 states & the District of Columbia.
“We are very excited to announce the creation of EnerTech Specialty Finance group. We believe expanding the EnerTech platform to include specialty finance capabilities will add significant depth to our organization and alternative financing capabilities for our portfolio companies, other energy technology companies and strategic partners. The combination of Pivotal funds experience along with EnerTech’s extensive network in the Energy Technology sector will provide significant deal flow opportunities and strategic linkages for the new financing vehicle
Wally Hunter – Managing Director, EnerTech Capital
“We are pleased to be partnered with EnerTech Capital who are leaders in identifying emerging technologies that will provide significant value and savings to property owners. Their long history and domain expertise in the space will help us find many great energy technology projects on CII buildings across the U.S.”
Howard Steinberg – Managing Director, EnerTech Specialty Finance
About EnerTech Capital
EnerTech Capital is a private investment firm focused on innovation in the energy and power industries: mid-stage companies that offer products or services that dramatically improve the profitability of producing or consuming energy. Founded in 1996, the firm has managed approximately $500 million and has delivered 36 exits. EnerTech Capital is currently investing out of its fourth fund and has offices in Philadelphia, Toronto, Montreal, Calgary and San Francisco.
About Pivotal Funds
Pivotal Funds provides financing to commercial property owners to make their buildings more energy efficient or to install clean energy systems through a structure called Property Assessed Clean Energy (PACE) which allows repayment to be made through the property tax bill. PACE can provide 100 percent of the hard and soft costs and allows building owners to use energy savings to cover the repayment. Based in Delray Beach, Pivotal Funds has become the outsourced finance partner for a wide range of energy technology providers.
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