Sustainable Development Capital LLP: Creating a 'One Stop Shop' for Sustainable Investment Capital

In a move aimed at expanding its presence in the energy transition market, Sustainable Development Capital LLP (SDCL) has recently acquired Volery Capital, a US-based private equity firm. This strategic acquisition will allow SDCL to create a comprehensive platform for sustainable investment capital, offering a range of financing options for energy efficiency and decentralized energy generation projects.

SDCL is a global leader in funding and operating energy efficiency and decentralized energy generation projects. With over $2 billion of energy assets under its management, SDCL has established itself as a key player in the renewable energy sector. By acquiring Volery Capital, SDCL will enhance its capabilities in private equity investment, enabling the company to participate in a broader range of energy transition opportunities focused on energy efficiency.

The combined platform of SDCL and Volery Capital will support customers who are seeking cleaner, cheaper, and more resilient energy solutions. The financing options provided by the platform will not only fund energy efficiency and decentralized generation projects but also the underlying technologies, software, and services driving these solutions.

The management team of Volery Capital, led by Emanuel Citron, Michael Pertnoy, and Cort Ahl, will oversee SDCL's private equity business going forward. They will work closely with SDCL's real asset investment teams to identify and invest in "picks and shovels" companies that offer proven business models ready for scaling. With their extensive experience and expertise, the Volery team will be instrumental in identifying high-quality opportunities and providing strategic support to portfolio companies as they grow.

The acquisition of Volery Capital by SDCL is a testament to the strong collaboration and synergies between the two firms. Volery has been a shareholder, board member, and strategic partner of SDCL for several years, and the acquisition will further strengthen their relationship. Ares Management and Folsom Point Funding, previous minority investors in Volery Capital, will continue to invest in the combined company. Volery Capital will continue managing its existing private equity vehicles, including Volery Capital Partners Fund I and an energy transition mandate managed on behalf of ZOMA Capital.

Both SDCL and Volery Capital share a common belief that achieving decarbonization requires rapid scaling of energy efficiency solutions. Despite being the most cost-effective source of emissions reductions available today, energy efficiency solutions are often overlooked by capital markets. The International Energy Agency predicts that 80% of CO2 emissions savings by 2030 will come from proven technologies that are readily available and widely tested. SDCL's private equity business will focus on investing in high-ROI, proven technology, software, and services solutions that enhance the performance of existing energy assets and reduce energy demand.

Scott Naidech, Nicholas Usher, and the global tax, transactional, and fund teams from Winston & Strawn represented Volery Capital in the acquisition.

Jonathan Maxwell, Founder and CEO of SDCL, expressed excitement about the energy transition and the role of the financial sector in delivering net zero. He emphasized the importance of unlocking capital to facilitate decarbonization at scale. Maxwell sees the acquisition of Volery Capital as an opportunity to broaden the type of financing options SDCL can provide and to make a significant impact on the energy transition.

Manny Citron, Managing Partner of Volery Capital, highlighted the long-standing collaboration between Volery and SDCL. He praised SDCL's expertise and experience in scaling distributed energy and energy efficiency solutions and emphasized the need to make private equity available to growth-stage companies driving decarbonization. Citron is optimistic about the opportunity created by the acquisition to establish a one-stop-shop financing platform dedicated to the energy transition.

Sustainable Development Capital LLP:

Established in 2007, Sustainable Development Capital LLP is a specialist investment firm that focuses on financing and developing clean energy, energy efficiency, and decentralized energy projects worldwide. SDCL has launched several funds dedicated to pioneering energy efficiency solutions and has raised innovative energy efficiency investment vehicles, including the first one listed on the London Stock Exchange. With over $2 billion of assets under management, the company has completed more than 50 green energy solution investments. For more information, visit www.sdclgroup.com.

Volery Capital:

Volery Capital is a growth-stage private equity firm that specializes in investing in companies involved in the energy transition. The firm's portfolio includes technology, software, and services companies focused on energy transition and resource efficiency. Volery manages several private equity vehicles, including one dedicated to grid modernization investments. For more information, visit www.volerycapital.com.