HPS Investment Partners and Enhanced Capital Launch Innovative Partnership to Invest in Energy Transition Projects
HPS Investment Partners and Enhanced Capital have announced a strategic partnership to provide structured capital solutions for renewable energy and battery energy storage projects across the United States. The collaboration aims to simplify tax credit monetization without complex tax equity structures, leveraging provisions from the Inflation Reduction Act (IRA) of 2022. The partnership combines HPS's renewable energy investment expertise with Enhanced Capital's tax credit structuring capabilities to support economy-wide decarbonization goals.
HPS Investment Partners e Enhanced Capital hanno annunciato una partnership strategica per fornire soluzioni di capitale strutturato per i progetti di energia rinnovabile e stoccaggio di energia da batterie negli Stati Uniti. La collaborazione mira a semplificare la monetizzazione dei crediti d'imposta senza complesse strutture di equità fiscale, sfruttando le disposizioni dell'Inflation Reduction Act (IRA) del 2022. La partnership combina l'esperienza di investimento in energia rinnovabile di HPS con le capacità di strutturazione dei crediti d'imposta di Enhanced Capital per supportare gli obiettivi di decarbonizzazione a livello economico.
HPS Investment Partners y Enhanced Capital han anunciado una asociación estratégica para proporcionar soluciones de capital estructurado para proyectos de energía renovable y almacenamiento de energía en baterías en Estados Unidos. La colaboración tiene como objetivo simplificar la monetización de créditos fiscales sin estructuras complejas de capital fiscal, aprovechando las disposiciones de la Inflation Reduction Act (IRA) de 2022. La asociación combina la experiencia de HPS en inversiones en energía renovable con las capacidades de estructuración de créditos fiscales de Enhanced Capital para apoyar los objetivos de descarbonización en toda la economía.
HPS Investment Partners와 Enhanced Capital는 미국 전역에서 재생 가능 에너지 및 배터리 에너지 저장 프로젝트를 위한 구조화된 자본 솔루션을 제공하는 전략적 파트너십을 발표했습니다. 이 협력은 복잡한 세금 자본 구조 없이 세금 공제의 수익화를 단순화하는 것을 목표로 하며, 2022년의 인플레이션 감축법(IRA)의 조항을 활용합니다. 이 파트너십은 HPS의 재생 가능 에너지 투자 전문성과 Enhanced Capital의 세금 공제 구조화 능력을 결합하여 경제 전반의 탈탄소화 목표를 지원합니다.
HPS Investment Partners et Enhanced Capital ont annoncé un partenariat stratégique pour fournir des solutions de capital structuré pour des projets d'énergies renouvelables et de stockage d'énergie par batterie aux États-Unis. Cette collaboration vise à simplifier la monétisation des crédits d'impôt sans structures fiscales complexes, en tirant parti des dispositions de la loi sur la réduction de l'inflation (IRA) de 2022. Ce partenariat allie l'expertise d'investissement en énergie renouvelable de HPS aux capacités de structuration des crédits d'impôt d'Enhanced Capital pour soutenir les objectifs de décarbonisation à l'échelle de l'économie.
HPS Investment Partners und Enhanced Capital haben eine strategische Partnerschaft angekündigt, um strukturierte Kapitallösungen für erneuerbare Energien und Batteriespeicherprojekte in den Vereinigten Staaten bereitzustellen. Die Zusammenarbeit zielt darauf ab, die Monetarisierung von Steuercredits ohne komplexe Steuergestaltungsstrukturen zu vereinfachen, indem die Bestimmungen des Inflation Reduction Act (IRA) von 2022 genutzt werden. Die Partnerschaft vereint die Expertise von HPS im Investmentbereich der erneuerbaren Energien mit den Fähigkeiten von Enhanced Capital in der Strukturierung von Steuercredits zur Unterstützung der übergreifenden Dekarbonisierungsziele der Wirtschaft.
- Strategic partnership enables simplified tax credit monetization for renewable energy projects
- Leverages IRA provisions for improved capital access in renewable energy sector
- Combines complementary expertise in renewable energy investment and tax credit structuring
- None.
Insights
The partnership between HPS Investment Partners and Enhanced Capital represents a strategic move to capitalize on the Inflation Reduction Act's tax credit transfer provisions. This initiative could significantly streamline renewable energy project financing by eliminating complex tax equity structures, potentially accelerating project development timelines and reducing transaction costs.
The platform combines HPS's substantial capital resources with Enhanced Capital's tax credit expertise, creating a competitive advantage in the rapidly growing renewable energy financing market. While specific investment amounts aren't disclosed, the partnership's focus on structured capital solutions for renewable energy and battery storage projects positions it well to capture market share in the expanding energy transition sector.
The timing of this partnership is strategically aligned with the massive growth potential in renewable energy infrastructure. The IRA's transferable tax credit provision has created a more efficient pathway for project financing, potentially unlocking billions in renewable energy investments. By simplifying the monetization process, this partnership could accelerate the deployment of renewable energy projects, particularly benefiting smaller developers who previously struggled with traditional tax equity structures.
The focus on battery energy storage is particularly noteworthy, as this sector is important for grid stability and renewable energy integration, with projected significant growth in the coming years.
The Inflation Reduction Act (IRA) passed in 2022 contained several provisions aimed at improving access to capital and reducing barriers to the deployment of renewable energy and energy storage assets to support economy-wide decarbonization goals. As part of the legislation, Investment Tax Credits and Production Tax Credits became eligible for a one-time transfer to third parties, creating a new avenue to monetize tax credits outside of tax equity financings. The new platform combines HPS Investment Partners' track record of investing in renewable energy and infrastructure businesses and assets with Enhanced Capital's expertise in tax credit structuring and monetization.
"We are pleased to partner with Enhanced Capital to offer comprehensive capital solutions for developers who are actively enabling the energy transition across the country," said Michael Dorenfeld, Managing Director at HPS Investment Partners. "With this commitment, we are bringing together HPS credit investment expertise with Enhanced Capital's capabilities accessing and funding tax credits across industries."
"For over two decades, Enhanced Capital has been financing projects with immediate and lasting impacts on communities and the environment," said Ed Rossier, Managing Director at Enhanced Capital. "The HPS partnership will significantly expand our renewable energy and battery storage financing for developers across the country."
About HPS Partners
HPS Investment Partners, LLC is a leading global, credit-focused alternative investment firm that seeks to provide creative capital solutions in order to generate attractive risk-adjusted returns for our clients. HPS manages various strategies across the capital structure, including privately negotiated senior debt; privately negotiated junior capital solutions in debt, preferred equity and equity formats; liquid credit including syndicated leveraged loans, collateralized loan obligations and high yield bonds; asset-based finance and real estate. The scale and breadth of HPS's platform offer the flexibility to invest in companies large and small, through standard or customized solutions. HPS has approximately
About Enhanced Capital
Enhanced Capital Group, LLC is a leading impact investment firm with over 24 years of experience investing in Climate Finance, Impact Real Estate, and Small Business Lending.
From inception in 1999 through June 30th, 2024, inclusive of proprietary assets and assets managed by affiliates, Enhanced Capital has raised a total of
Enhanced Capital is committed to investing in four main impact themes: Underserved Communities; Underrepresented Populations; Environmental Sustainability; and Community Development Programs. Enhanced Capital is a subsidiary of P10, Inc. (NYSE: PX), a diversified, multi-asset investment platform. For more information, please visit https://enhancedcapital.com.
Enhanced Capital Disclaimer
Enhanced Capital Group, LLC, and its affiliates, is an Equal Opportunity Provider. The information presented is for discussion purposes only and is neither an offer to sell nor a solicitation of any offer to buy any securities, investment product, or investment advisory services. This is not an offering or the solicitation of an offer to purchase an interest in a fund.
CONTACT: info@enhancedcaptial.com
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SOURCE Enhanced Capital
FAQ
What is the purpose of the HPS Investment Partners and Enhanced Capital partnership?
How does the Inflation Reduction Act (IRA) support this partnership's objectives?
What expertise do HPS Investment Partners and Enhanced Capital bring to the partnership?
