Cleanfund Commercial PACE Capital, Inc.

Cleanfund Commercial PACE Capital, Inc. specializes in Property Assessed Clean Energy (PACE) financing, enabling commercial property owners to fund energy efficiency and renewable energy improvements without increasing mortgage debt, thereby enhancing property value. Cleanfund Commercial PACE Capital, Inc. was founded in 2009 in Sausalito, US.

The company provides PACE financing solutions specifically for commercial real estate owners and lenders to support energy-efficient upgrades. The firm has engaged in two notable deals, with the most recent one occurring on September 19, 2017. Cleanfund raised USD 15. 00 mn in a Series B round led by Vulcan Capital.

The company is led by CEO John Kinney, who has a background in financing strategies. CleanFund's core offering is Property Assessed Clean Energy (PACE) financing, which enables commercial property owners and lenders to fund energy efficiency and renewable energy improvements without increasing mortgage debt. By leveraging PACE financing, property owners can receive up to 100% of the upfront costs for improvements that aim to reduce utility expenses, thereby enhancing overall property value. The financing is repaid over a period of up to 30 years through property tax assessments, making it a long-term, secure investment for both lenders and property owners.

CleanFund primarily serves commercial real estate lenders and property owners across various markets, including California and 40 other states that have approved PACE legislation. The company's services are designed for stakeholders such as municipalities, real estate developers, service providers, and mortgage brokers, all of whom benefit from improved cash flow and reduced energy costs. CleanFund's revenue model is driven by the fees associated with the underwriting and management of PACE financing programs for lenders and property owners. Transactions typically occur through a structured financing agreement where the capital is provided upfront to fund energy-efficient improvements, with repayments collected via property tax assessments.

The revenue generated comes from transaction fees, management fees, and potentially from the issuance of PACE bonds backed by the assessment contracts. The financing terms commonly include fixed-rate options for a period of 20 to 30 years, allowing clients to manage cash flow effectively while making substantial improvements without significant out-of-pocket expenses. As a result, CleanFund's financial structure is built on establishing partnerships with lenders and municipalities, facilitating transactions that support energy-efficient upgrades and sustainable building practices. In October 2017, Cleanfund Commercial PACE Capital, Inc.

secured USD 15. 00 mn in a Series B funding round led by Vulcan Capital. The company aims to use this funding to enhance its PACE financing offerings and expand into new geographic markets to broaden its client base. Specific target markets for growth have not been detailed, but it is expected that CleanFund will continue its focus on states that have favorable PACE legislation.

The firm is also working on developing new products to streamline the financing process for commercial property owners and lenders, although specific launch dates for these initiatives have not been disclosed.