Riverstone Energy Limited Commitment of $25 million to Loanpal, LLC (4676L)
January 13 2021 - 1:00AM
UK Regulatory
TIDMRSE
RNS Number : 4676L
Riverstone Energy Limited
13 January 2021
LEI: 213800HAZOW1AWRSZR47
13 January 2021
Riverstone Energy Limited Announces Commitment of $25 million to
Loanpal, LLC
London, UK (13 January 2021). RIGL Holdings, LP ("Riverstone"),
the Manager of Riverstone Energy Limited ("REL"), has announced the
signing of an agreement for REL to invest $25 million in Loanpal,
LLC ("Loanpal"), the leading sustainable home improvement fintech
provider used in over half of US residential solar system sales.
Riverstone Global Energy & Power Fund VI also participated in
the transaction, investing $50 million for a total investment of
$75 million from Riverstone affiliated investment vehicles.
Loanpal is a San Francisco based technology-enabled sustainable
home improvement loan originator, providing a point-of-sale lending
platform used by key residential contractors. Loanpal does not take
funding risk, the company presells its originated loans via forward
purchase agreements to large funds managed by asset managers
including Blackstone and Goldman Sachs. The company's attractive
unit economics and asset-light business model allow for rapid
growth and the ability to scale faster than its competitors, while
generating free cash flow by capitalizing on upfront net cash
payments on the flow or loan originations and avoiding costly
SG&A and capital expenditures incurred by other portions of the
value chain.
The investment supports broad decarbonization, decentralization
of zero carbon energy generation, consumer reliability of diverse
energy sources, and distributed and decentralized generation. Solar
costs have plummeted in the last 10 years and are continuing to
decline making residential solar a cost reducing value proposition
for many US regions. Additionally, the trend to encourage the
greening of the economy - and especially in Sunbelt state
legislatures - is expected to continue to support the category as
seen with the recent extension of investment tax credits that
support the sector. Loanpal provides a scalable solution for large
funds managed by asset managers to generate exposure to quality
green credit. Given the company's current market share and
profitability underpinned by the growth rate of distributed
residential generation and energy storage, we believe Loanpal is
poised for growth from our attractive entry valuation. In addition,
the company is well-positioned to expand lending volumes into home
improvement/efficiency markets, which are likely to increase as
global economies work towards decarbonization goals.
The Loanpal investment represents REL's continued focus on
originating and executing investments that support the portfolio's
focus on environmental, social and governance considerations, while
also providing the opportunity to generate strong returns for
Shareholders. Going forward, REL expects to continue executing upon
its modified investment approach to further position the portfolio
to capitalise on energy transition tailwinds.
About Riverstone Energy Limited:
REL is a closed-ended investment company that invests
exclusively in the global energy industry across all sectors. REL
aims to capitalise on the opportunities presented by Riverstone's
energy investment platform. REL's ordinary shares are listed on the
London Stock Exchange, trading under the symbol RSE. REL has 10
active investments spanning oil and gas, renewable energy and power
in the Continental U.S., Western Canada, Gulf of Mexico and
Europe.
For further details, see www.RiverstoneREL.com
About Riverstone Holdings LLC:
Riverstone is an energy and power--focused private investment
firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre,
Jr. with approximately US$41 billion of capital raised. Riverstone
conducts buyout and growth capital investments in the E&P,
midstream, oilfield services, power, and renewable sectors of the
energy industry. With offices in New York, London, Houston, Mexico
City, Amsterdam and Menlo Park, Riverstone has committed over US$41
billion to more than 195 investments in North America, Latin
America, Europe, Africa, Asia, and Australia.
For further details, see www.RiverstoneLLC.com
Neither the contents of Riverstone Energy Limited's nor
Riverstone Holdings' websites nor the contents of any website
accessible from hyperlinks on the websites (or any other website)
is incorporated into, or forms part of, this announcement.
Media Contacts
For Riverstone Energy Limited:
Jingcai Zhu
+1 212 271 6261
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