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Greenbacker Achieves Wind Repowers; Raises $263 Million for Managed Funds in 2023

Greenbacker Renewable Energy Company LLC, a climate-focused investment manager with a registered investment adviser subsidiary, recently secured $437 million in financing to repower two utility-scale wind energy assets in Iowa and complete a like-for-like equipment replacement repower at its largest wind farm in Minnesota.

The repowers represent an energy transition milestone for Greenbacker. In addition to qualifying for the 30% investment tax credit, the projects are also among the clean energy industry’s first to utilize the additional 10% domestic content bonus newly created by the Inflation Reduction Act, based on their use of components manufactured in the United States, including new turbine blades, hubs, and nacelles.

“These repowers are among the first deals to utilize the ‘domestic content adder’ put in place under the IRA – a win for U.S. manufacturing – and we are quite frankly thrilled to be an early success story demonstrating that the legislation is bolstering additional renewables investment,” said Armand G. Dehaney, principal of investments at Greenbacker.

All three projects have now entered commercial operation. It is estimated that the repowers will produce enough clean energy combined to power over 45,000 homes a year and abate nearly 347,000 metric tons of carbon (an amount equivalent to removing 77,000 gas-powered cars from the road).

The repowers were among 2023 achievements Greenbacker recently listed. Other highlights included:

  • The company’s Greenbacker Capital Management – an asset manager and sponsor of investment vehicles focused on renewable energy – raised $263 million for its managed funds, increasing fee-earning assets under management to approximately $700 million as of Dec. 31, 2023. Aggregate AUM, which includes the assets managed for the company (and for which GCM does not receive management fees), rose to approximately $3.8 billion.
  • As of the end of 2023, GCM served as the investment manager to five energy transition-focused funds.
  • GCM launched its fourth sustainability driven investment strategy, this one focused on acquiring energy transition real estate. It hired David Zackowitz, former Blackstone managing director, to the newly created position head of real estate investments. He will lead the strategy, as well as expand its real estate investment team with other key hires, including Evan Sherman, former Blackstone principal.

Greenbacker Renewable Energy Company LLC is a publicly reporting, non-traded limited liability sustainable infrastructure company that both acquires and manages income-producing renewable energy and other energy-related businesses, including solar and wind farms, and provides asset management services to other renewable energy investment vehicles. Greenbacker conducts its asset management business through its wholly owned subsidiary, Greenbacker Capital Management LLC.

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