CIS Secures Second Tranche of Private Financing from the Urban Investment Group at Goldman Sachs Alternatives to Expand Stormwater Infrastructure in Greater Milwaukee

Rhea-AI Summary

CIS has secured a second tranche of private financing from Goldman Sachs Alternatives' Urban Investment Group (UIG) to expand stormwater infrastructure in Greater Milwaukee. The funding will support the Fresh Coast Protection Partnership (FCPP) with Milwaukee Metropolitan Sewerage District (MMSD), targeting the management of 11.5 million gallons of stormwater runoff.

The initiative has already delivered or is working on eighteen green infrastructure projects across Milwaukee, with 93% on private properties and nearly 50% in low-to-moderate income areas. Notable achievements include 46% of work led by local, small, women-, minority-, and veteran-owned businesses. A key project example is Davidson Park at Harley-Davidson headquarters, which can capture 225,000 gallons of stormwater per rain event.

The partnership aligns with MMSD's 2035 Vision targeting 740 million gallons storage capacity, of which over 100 million gallons has been achieved, with CIS contributing more than 10% in the past five years.

Positive

• Secured additional private financing from Goldman Sachs UIG for infrastructure expansion
• Managing 11.5 million gallons of stormwater runoff through green infrastructure
• Strong project execution with 18 infrastructure projects delivered or in progress
• High participation rate (46%) from local, small, women-, minority-, and veteran-owned businesses
• Contributing over 10% to MMSD's total storage capacity achievement in just five years

Negative

• None.

Insights

Investment Analyst

This second tranche of financing from Goldman Sachs' Urban Investment Group represents a strategic expansion of green infrastructure investments with compelling risk-adjusted returns. The project's focus on stormwater management in Milwaukee demonstrates a sophisticated approach to generating both financial and social returns.

The financial structure is particularly noteworthy, combining private capital with public funding sources. This hybrid approach helps optimize capital costs while maintaining strong governance controls. The model's treatment of environmental assets as traditional AUM suggests potential for institutional-grade returns with lower correlation to traditional market factors.

The investment thesis is strengthened by regulatory tailwinds from EPA compliance requirements and growing municipal needs for stormwater infrastructure. With 93% of projects on private properties and strong local business participation metrics, the scalability potential is significant. The risk mitigation through FCPP's full-cycle development approach adds another layer of investment protection.

Environmental Infrastructure Expert

The technical specifications of this project reveal sophisticated engineering considerations. Managing 11.5 million gallons of stormwater runoff requires extensive infrastructure planning, particularly in urban settings. The Harley-Davidson headquarters project, capturing 225,000 gallons per rain event, exemplifies the scale of these installations.

The integration of green infrastructure with existing grey infrastructure systems represents a forward-thinking approach to urban water management. This dual-system strategy effectively addresses both immediate flooding concerns and long-term environmental resilience. The focus on low-to-moderate income areas suggests careful consideration of environmental justice principles while maintaining infrastructure effectiveness.

CIS leverages unique ability to source funding from both private sponsors and low-cost public capital, implementing governance controls to treat environmental assets as traditional Assets Under Management

ANN ARBOR, Mich.--(BUSINESS WIRE)-- CIS, the nation’s leading resilient infrastructure builder, has announced the deployment of a second tranche of private financing from its credit facility with the Urban Investment Group (UIG) at Goldman Sachs Alternatives. This funding will further enhance CIS’s capacity to mitigate stormwater runoff across the Greater Milwaukee region through its Community-Based Partnership (CBP) with the Milwaukee Metropolitan Sewerage District (MMSD) called Fresh Coast Protection Partnership (FCPP). Since the 1990s, MMSD has been implementing green infrastructure strategies to slow or capture water before it reaches discharge points, complementing grey infrastructure by increasing capacity. A variety of programs, partnerships, and policies have established the foundation for MMSD’s 2035 Vision, targeting a storage capacity of 740 million gallons. So far, MMSD has achieved over 100 million gallons, with CIS accounting for over ten percent of that total in the past five years alone.

Located on the Harley-Davidson headquarters campus on the west side of Milwaukee, Davidson Park transformed what was a large employee parking lot into a signature neighborhood amenity that also has the functional use of capturing up to 225,000 gallons of stormwater after every rain event. (Photo: Business Wire)

The investment will continue to fund the construction of green infrastructure to manage a total of 11.5 million gallons of stormwater runoff, reducing localized flooding and sewer overflows to support local communities. By addressing environmental and health impacts associated with climate change, this initiative supports compliance with the EPA Clean Water Act while transforming stormwater from a hazard into a resource. The CBP will continue to prioritize projects in low-to-moderate-income neighborhoods and empower small, local, and disadvantaged businesses to implement green stormwater infrastructure improvements. FCPP’s model protects taxpayer investment by taking on all risk throughout the development process from project origination to delivery.

CIS specializes in navigating public procurement, managing program controls, scheduling, subcontractor negotiations, and risk management. The organization also excels in identifying and assessing private property for future projects in urban settings, creating win-win strategies for both private and public stakeholders. CIS helps lower barriers to entry for local workforce participation by engaging a diverse network of subcontractors and organizing them into an ecosystem that aligns with government environmental infrastructure best practices.

“Since 2020, we have successfully delivered or are working to deliver eighteen different green infrastructure projects across Milwaukee, 93% of which are located on private properties, nearly 50% located in low-to-moderate income areas, and 46% of the work have been led by local, small, women-, minority-, and veteran-owned businesses,” said Sanjiv Sinha, Ph.D., CEO and Board Member of CIS. “Our ability to source funding from both private sponsors and low-cost public capital, implementing governance controls to treat environmental assets as traditional Assets Under Management is very unique.”

The Urban Investment Group (UIG) at Goldman Sachs Alternatives drives the firm’s impact investing, delivering innovative financing to address pressing social and economic challenges and fuel long-term growth in low- and moderate-income communities. Since 2001, UIG has committed over $21 billion to transformative projects, including one of the U.S.’s first social impact bonds and one of the largest public housing green energy retrofits.

“We’re proud to partner with CIS to bring much-needed infrastructure upgrades to underserved communities,” said Sherry Wang, Co-head of the Urban Investment Group at Goldman Sachs Alternatives. “Not only will this investment protect communities from environmental threats, it is also expected to fuel job growth by employing the local workforce.”

The U.S. Environmental Protection Agency (EPA) estimates that approximately 10 trillion gallons of untreated stormwater runoff enter U.S. waterways annually. This runoff carries pollutants such as raw sewage, trash, and toxins, contributing to environmental degradation and posing risks to public health. CIS’s green infrastructure solutions mimic natural hydrological processes, using soil and vegetation to capture, filter, cool, and reduce flooding while preventing pollutants from entering water supplies.

This commitment marks the second installment from UIG to finance CIS’s eco-friendly stormwater infrastructure projects nationwide. Aligned with CIS’s and UIG’s commitment to underserved communities, at least 50% of projects will be in low-to-moderate-income neighborhoods and all programs financed by the facility will continue to target high participation from small, minority-, and women-owned businesses. More details can be found here: https://www.cisolutions.com/project/fresh-coast-protection-partnership/.

About CIS

CIS is a national leader in the development and implementation of public infrastructure solutions, focusing on improving the environmental, economic, and social condition of the nation’s infrastructure through solutions that drive local economic inclusion and equity, reduction of public risk, and increased community investment and buy-in. CIS also offers related advisory expertise and services on topics including nature-based solutions, climate resilience, disaster prevention, environmental equity/justice, green stormwater infrastructure, environmental finance, water affordability, and public trust. For more information, please visit www.cisolutions.com.

About the Urban Investment Group (UIG) at Goldman Sachs Alternatives

Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $500 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, hedge funds and sustainability. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs. The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets. The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs has over $3.1 trillion in assets under supervision globally as of September 30, 2024.

Established in 2001, UIG has committed over $21 billion in loan and investment capital to revitalize and rebuild the urban fabric in underserved neighborhoods, investing in economic development projects and social enterprises across affordable housing, education, workforce development, small businesses, and sustainability.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250114102049/en/

Media Contact:

Christine Nichols

Tel: 734-436-8173

info@cisolutions.com

Source: CIS

FAQ

What is the total stormwater management capacity targeted by CIS's new Goldman Sachs-funded project?

The project targets management of 11.5 million gallons of stormwater runoff in the Greater Milwaukee area.

How many green infrastructure projects has CIS delivered in Milwaukee since 2020?

CIS has delivered or is working to deliver eighteen different green infrastructure projects across Milwaukee since 2020.

What percentage of CIS's Milwaukee projects are located in low-to-moderate income areas?

Nearly 50% of CIS's projects in Milwaukee are located in low-to-moderate income areas.

How much stormwater can the Davidson Park project at Harley-Davidson headquarters capture?

Davidson Park can capture up to 225,000 gallons of stormwater after every rain event.

What is MMSD's 2035 Vision storage capacity target, and how much has been achieved?

MMSD's 2035 Vision targets a storage capacity of 740 million gallons, with over 100 million gallons achieved so far.