Integration of tax-credit resource allows SunRocket Capital to provide a full-capital stack structured finance solution.
June 24 , 2024 (Miami, FL) – SunRocket Capital, a structured finance partner to solar developers, and Dudley Ventures, a tax credit investment specialist and subsidiary of Valley National Bancorp, announced an arrangement to provide SunRocket Capital borrowers an option to monetize more than $100 million in tax credits for renewable energy projects. The arrangement ensures that SunRocket Capital’s clientele of middle market solar developers and engineering, procurement and construction (EPC) firms have ready access to this vital element of the capital stack for commercial, industrial and community solar development projects.
The integration between SunRocket Capital and Dudley Ventures provides advantages for both firms and their clients. SunRocket Capital borrowers now have an even greater access to capital as well as speed of transaction, while Dudley Ventures is able to align its tax credit investments with diligently sourced investment grade assets.
“We are thrilled to integrate our product offering with Dudley Ventures to further enhance the value we bring to clients,” stated Brian A. Sidman, Founder & CEO of SunRocket Capital. “Arranging a tax equity source to complement our construction-to-permanent capital for middle-market solar developers ensures successful renewable projects by removing yet another obstacle to development.”
“Working with SunRocket Capital clients as they are identified early in the construction to permanent financing process gives us access to renewable projects that align with our tax credit investment objectives in a very efficient manner,” stated Kyle Koupal, Vice President of Investments at Dudley Ventures. “We expect to be able to align our capital behind some very impactful projects and their developers,” he continued.
About tax credit monetization in solar development projects:
Tax credit monetization in solar development occurs when a large corporation or investor acquires a renewable project’s tax benefits from a developer (usually a much smaller company) in exchange for a cash investment in the project. The model for such investments is not new; tax equity has long played a role in the industrial and transportation sectors. However, with the Inflation Reduction Act, there are new, more efficient ways to monetize these benefits. The solution offered by SunRocket Capital and Dudley Investments is integrated into the structured finance solution offered by SunRocket Capital and pairs developers and EPCs –the smaller companies mentioned above – with tax equity investors at or near NTP (Notice to Proceed). The pre-arranged tax equity investments flow into the project as the asset purchase and installation (construction)loan structure converts to permanent debt at COD (Commercial Operation Date). This saves transaction time and creates certainty for all parties involved.
For background information on tax credits please visit the linked summary page from the Environmental Protection Agency(EPA).
About SunRocket Capital:
SunRocket Capital is a leading private lender specializing in financing commercial, industrial, and community solar projects. Led by an experienced team in solar development and structured finance, SunRocket Capital is dedicated to advancing sustainable initiatives by serving as a preferred capital source, including serving as a resource for tax equity investments as necessary, for developers and EPCs. The company’s core structured credit solution (SolarC2P™) is designed to support solar projects at or near NTP (Notice to Proceed), which is the time in a project’s life cycle when developers are prepared to purchase and install solar assets. Upon reaching commercial operation date (COD), developers benefit from a seamless conversion to term debt within the same loan structure, facilitating long-term ownership, operation, and portfolio-building.
For more information please visit: www.sunrocketcapital.com.
About Dudley Ventures:
In business over 20 years, Dudley Ventures and its affiliates have invested over $2 billion in tax credit transactions with deep community impact. We have a team of seasoned experts in investing in projects benefiting from tax credits, including the following tax credit programs: New Markets Tax Credits, Historic Tax Credits, Low-Income Housing Tax Credits, Renewable Energy Tax Credits, and various state programs adopted to achieve similar results to the federal programs.
Dudley Ventures, LLC is a Delaware limited liability company and is owned by Valley National Bancorp, a regional bank holding company.
For more information please visit: www.dudleyventures.com.
For media inquiries, please contact:
Adam Moskowitz
Chief Marketing and Communications Officer
SunRocket Capital
adam@sunrocketcapital.com
