Global Infrastructure Partners (GIP), a U.S.-based infrastructure fund manager, and its co-investors announced that it would invest $500 million in BrightNight, an independent renewable power producer, through Global Infrastructure Partners Capital Solutions Fund II (GIP CAPS II).
The investment represents the fourth commitment made by GIP CAPS II. The CAPS strategy helps infrastructure projects and companies in GIP’s core sectors like power, renewables, energy transition, digital, midstream energy, transportation, and water or waste with tailor-made capital solutions.
The preferred equity is expected to provide flexibility for funding BrightNight’s development efforts and satisfying equity funding needs during the construction and operation of renewable projects. In addition, the fresh funding will also help offer its consumer a single point of service from development through the operation.
BrightNight said it would provide next-generation power solutions with multiple renewable energy technologies. The company’s project pipeline utilizes hybrid solutions across the U.S. with diverse resources, including solar and storage.
Milbank LLP served as a legal counsel of GIP. PJT Partners was a financial advisor to BrightNight and Taft Stettinius & Hollister LLP, and Schulte Roth & Zabel LLP acts as its legal counsel.
Martin Hermann, Chief Executive Officer of BrightNight, said, “GIP’s support will enable us to rapidly deliver innovative power solutions like 24*7 structured products and dispatchable systems optimized to competitively replace non-renewable baseload generation.”
In June 2021, BrightNight entered the Indian renewable energy market. The company aimed to develop 10 GW of renewable energy projects across India and raised over $2.5 billion in capital for energy projects.
Hermann said India is a critical market with the opportunity to be a global energy decarbonization leader.
GIP has grown to be one of the world’s largest infrastructure investors and currently manages $77 billion in assets on behalf of its global investor base.
According to Mercom Captial Group’s ‘Annual and Q4 2021 Solar Funding and M&A Report‘, solar companies raised $27.8 billion in 2021, a 91% increase compared to the $14.5 billion raised in 2020. Corporate funding in 2021 was the highest in ten years.