Cypress Creek Renewables, a developer and owner of solar generating assets has secured $200 million in equity investment. A group led by Temasek, a global investment company headquartered in Singapore, has agreed to purchase preferred equity interests in Cypress Creek Renewables.
The $200 million investment represents the purchase by the group of preferred stock and warrants to purchase up to an aggregate 10 percent stake of the common stock. Proceeds will support the company’s continued growth through creation, investment, maturation and monetization of its development portfolio.
Cypress Creek Renewables will continue to operate under its existing management and add two independent directors to its board.
“Temasek has shown itself to be a patient, forward-looking partner focused on generating sustainable long-term returns – and it is this shared vision that makes expansion of our relationship quite natural,” said Cypress Creek Renewables CEO Matt McGovern.
“The confidence Temasek has shown in our business model and development portfolio is a firm endorsement of our strategy, which we look forward to refining and executing on in tandem in the years to come,” added McGovern.
“Our strategy focuses on creating markets, originating projects and allocating capital to the most attractive risk-adjusted opportunities, with success being driven by our ability to navigate development, structural and financial complexities as well as assessing and pricing risk,” commented Brad Bauer, Cypress Creek Renewables Chief Capital Markets Officer.
According to Mercom’s Solar Funding and M&A Report, global VC funding (venture capital, private equity, and corporate venture capital) for the solar sector in 1H 2018 was 36 percent lower with $458 million compared to the $716 million raised in the first half of 2017.