Global investment firm Carlyle (NASDAQ: CG) has announced a $450 million forward flow agreement to purchase newly issued residential solar loans from Sungage Financial, a leading provider of solar financing. Alongside this, Carlyle has made a strategic investment into Sungage Financial. This partnership is expected to enhance Sungage Financial's origination capacity and drive future growth.
Sungage Financial was established in 2011 and launched the nation’s first asset-backed solar loan specifically designed for residential projects. Today, the company partners with solar and battery sales and installation companies to finance energy-efficient home improvements. Sungage offers reliable and flexible online financing solutions with the lowest monthly payments available for solar, roof, and battery loans.
“Our partnership with Carlyle is a huge win in so many ways,” said Michael Gilroy, CEO of Sungage Financial. “It gives Sungage line of sight to tremendous capacity and accelerates our ability to scale. Ultimately, it will help us make solar more affordable and accessible for homeowners, as we all work toward a more sustainable future.”
Akhil Bansal, Head of Credit Strategic Solutions at Carlyle, highlighted the partnership's potential. “This partnership highlights Carlyle’s robust asset-backed finance capabilities, enabling us to deliver scaled, tailored solutions that meet the complex needs of our clients," he said. "We are excited to partner with Sungage to drive this next phase of growth for the company.”
Steve Hatfield, Co-Head of Global Sustainability at Carlyle also commented on the significance of this move in terms of sustainability. "The energy transition is one of the most significant investment opportunities of our time,” he said. “Sungage Financial’s mission to help homeowners transition to a renewable energy source is helping build a more sustainable future for both homeowners and our energy system."
The transaction was led by Carlyle’s Credit Strategic Solutions team which focuses on private fixed income and asset-backed investments. The team has deployed more than $3.5 billion since 2021 and manages approximately $7 billion in assets as of March 31, 2024.