Altus Power announced on Monday the successful closure of a construction facility aimed at facilitating the deployment of commercial solar assets. The facility, backed by alternative investment manager Blackstone, boasts a substantial capacity of USD 200 million (EUR 186.9m), specifically allocated to cover costs associated with equipment, labor, interconnection, and development fees. Notably, Blackstone has mobilized insurance capital on behalf of its insurance clients to underpin Altus Power's projects.
Amidst a landscape where traditional sources of funding, such as bank lending and conventional construction facilities, face significant constraints, Altus Power has strategically secured an additional capital line from Blackstone. This infusion of funds is earmarked for supporting the company's construction activities, a move highlighted by Dustin Weber, CFO of Altus Power, who stated, “In an environment where bank lending and conventional construction facilities are extremely limited, Altus Power has secured an additional line of capital from Blackstone which can be used to fund our construction activity.”
Gregg Felton, co-founder and Co-CEO of Altus Power, emphasized the collaborative effort with Blackstone in designing a construction facility tailored to tap into the robust appetite of insurance capital. This strategic approach not only provides long-term financing for Altus Power's projects but also extends financial support during the critical construction phase. Felton remarked, “Together with Blackstone, we designed this construction facility to leverage the strong appetite of insurance capital, which provides long-term financing and will now also finance Altus during the construction period.”
This partnership between Altus Power and Blackstone signifies a significant step in addressing the financing challenges prevalent in the current market, fostering growth in the commercial solar sector.