San Francisco–based residential solar lender Dividend Solar announced earlier this year that it would partner with PACE provider Figtree Financing in a merger which included a $200 million commitment from LL Funds to fuel the growth of the combined entity.
In news which sort of got swept under the carpet from June, Dividend Solar announced in late June that it would merge with PACE provider Figtree Financing. The announcement was accompanied by news that independent specialized mortgage manager LL Funds would commit up to $200 million to fuel the resulting company’s growth.
Figtree is a leading provider of Property Assessed Clean Energy (PACE) financing for energy efficiency improvements, including solar energy, and according to Dividend Solar, this represents the first time a PACE financing provider has merged with a residential solar lender.
“LL Funds is the perfect partner — the principals are bringing their significant experience in specialty finance and capital markets to help us build a financing platform that can endure all market cycles,” said Eric White, Dividend Solar’s President.
“We are excited to announce our partnership with LL Funds and with Figtree, which will allow our company to expand its financing program to include PACE and to accelerate our nationwide growth. We can now offer a suite of products to our customers, creating a ‘one-stop shop’ where commercial and residential property owners can secure the upfront financing they need for renewable energy and efficiency upgrades.”
“PACE is a unique offering that enables energy projects at an affordable price for customers who might otherwise not have had access to longer term financing,” added Mahesh Shah, CEO of Figtree. “It is one of the fastest growing financing products in the space, and we are excited to be joining forces with Dividend Solar to launch a complete solution for all property owners.”
The up to $200 million investment being made by LL Funds is part of the company’s commitment to renewable energy, and it has also committed to providing additional capital to the combined company.
“The combination of Dividend Solar and Figtree, along with LL Funds’ credit experience and Raj’s career in regulated consumer finance, positions Dividend as the reliable, responsible lender to serve consumers, business owners and installation professionals alike,” says Roberto Sella, Managing Partner of LL Funds. “The addition of a PACE product to Dividend Solar’s technology platform allows homeowners and commercial property owners, who previously could not access low-cost financing, to lead the transition towards energy independence and save money without coming out of pocket upfront.”