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Latest platform partnership closes at $1.5 billion and includes a new strategic partnership with CalSTRS; other new investors, such as HESTA, and existing investors, such as AustralianSuper and QIC, also participated
Generate Capital (“Generate”), a leading sustainable infrastructure platform, announced the closing of its latest capital raise with $1.5 billion in new capital commitments from preeminent global institutional investors. The California State Teachers’ Retirement System (“CalSTRS”), the world’s largest educator-only pension fund, joined other new investors such as HESTA, as well as existing investors including QIC and AustralianSuper, in the financing. This new round brings the total capital raised by Generate since its inception in 2014 to over $10 billion.
Over the last decade, Generate has developed a creative and flexible platform dedicated entirely to accelerating the infrastructure transition – from building and financing infrastructure assets to incubating, building and financing leading infrastructure companies. The result is an integrated offering – a “one-stop shop” – for capital, innovators, customers, and communities committed to rebuilding the world. Since its founding, Generate has partnered with more than 50 project development and technology companies, dozens of investors and hundreds of communities to establish a diverse portfolio of thousands of sustainable infrastructure projects around the world.
As of September 2023, Generate helped produce over 320GWh of sustainable power and process more than 715Kt in organic waste. In addition to its project portfolio, Generate’s subsidiaries and portfolio companies are leading the infrastructure transition, bringing value to waste through Generate Upcycle, making the electric grid more reliable through esVolta, and expanding renewable power generation with Nexamp and Pine Gate Renewables. In 2023, Generate expanded its creative approach to accelerating the transition by entering joint ventures with Blue Bird Corporation to bring electric school buses to districts across the country and with McKinstry to accelerate energy efficiency with municipal customers. The flexibility and innovation of the platform combined with its record of success providing compelling returns to investors allowed for a successful fundraise in a more constrained capital markets environment.
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“We’re at an inflection point in the transition to a clean energy economy,” says Generate Capital CEO and co-founder Scott Jacobs. “While the window for action is getting smaller every day, we have the blueprints to build the critical infrastructure that will ensure a livable future. We need to invest trillions, not billions. Ten billion dollars is just a start. We are incredibly proud that our differentiated model integrating finance and operations, meshing innovation with scale, harnessing top talent, and being totally dedicated to this transition attracts the world’s best partners and continues to deliver for our investors and communities.”
CalSTRS’ participation in this capital raise establishes a strategic partnership with Generate and deepens their ongoing investment in the platform.
“Our mission is to provide a secure retirement for California’s public educators and beneficiaries,” said Kirsty Jenkinson, CalSTRS’ Director of Sustainable Investment and Stewardship Strategies. “Our strategic partnership with Generate Capital aligns with our mission to deliver superior financial returns for our portfolio while creating demonstrable positive outcomes for the environment and society.”
“Generate Capital has delivered strong returns for AustralianSuper members,” said AustralianSuper Global Head of Real Assets, Nik Kemp. “We look forward to Generate continuing to deliver great performance while also playing a pivotal role in the global clean infrastructure transition.”
Some of Generate’s key 2023 highlights include:
- Over $2 billion invested in the energy transition, building more infrastructure assets, growing infrastructure companies, and financing leading players.
- Viridis Initiative, a joint venture established with McKinstry, was launched to deliver turnkey energy-as-a-service (EaaS) solutions to municipalities, universities, schools, and hospitals.
- Clean Bus Solutions, a joint venture established with the Blue Bird Corporation, was launched to meet the increasing demand for electric school buses and accelerate the adoption of clean transportation of students in North America.
- Generate helped Hillsborough County Public Schools finance, install and maintain energy efficiency solutions across its facilities. This resulted in the district avoiding $13 million in annual utility costs, reduction in CO2 emissions by 45,000 metric tons, and improved air quality in 100% of the public schools as of July 2023.
- Pine Gate Renewables, in which Generate has partnered with the founding team to invest and build the company, became the country’s third-largest solar developer.
- esVolta, a Generate subsidiary, closed one of the energy storage industry’s first standalone storage tax equity investments, taking advantage of the Inflation Reduction Act with U.S. Bank to finance the completion of a 30MW/60MWh utility-scale energy storage project in California.
- Ubiquity, in which Generate has partnered with the founding team to invest and build the company, is now both the largest and fastest growing open-access broadband network in the country.