Energy Efficiency Leader Redaptive Secures $156.5 Million In Funding Led By CarVal Investors
Growing need to meet sustainability targets, reduce energy costs and scale portfolio-wide resiliency drives demand for Redaptive's Efficiency-as-a-Service solutions in North America and worldwide
SAN FRANCISCO, Oct. 7, 2020 /PRNewswire/ -- Redaptive Inc., a leading provider of Efficiency-as-a-Service solutions for commercial and industrial customers, announced today it has closed $156.5 million in funding led by CarVal Investors. Existing investors CBRE, Engie New Ventures, Evergy Ventures and Linse Capital also invested in the company alongside CarVal. Redaptive will leverage this operating capital to expand its energy efficiency offerings to meet growing demand from existing and new customers.
Redaptive enables energy efficiency upgrades including the replacement of lighting with energy efficient LED fixtures. Pictured, is a Huntsville, Alabama manufacturing facility owned by Saint-Gobain. On the left is a view inside the facility before the lighting replacement. On the right is the same view after the LED lighting installation.
More companies are seeing the benefit of running their operations smarter, more efficiently, and more sustainably.
Redaptive enables energy efficiency retrofit programs without upfront capital and guarantees results using directly measured building data. This allows companies to reduce their costs while continuing to scale their operations. Redaptive has partnered with a growing number of companies around the world, including Iron Mountain, McKesson, Saint-Gobain, SRS Distribution, Avantor, Swedish Health Services and more.
"Achieving our sustainability commitments and optimizing our capital allocation are key components to our business strategy and are important to our employees and customers around the world," said Dan Anninos, Iron Mountain's VP of Global Facility Management. "Redaptive has played a fundamental role in helping us achieve broad emission and energy reductions, through our energy efficiency programs, while all along preserving internal capital for our core business in North America and across Europe."
These strong partnerships have been pivotal to the company's continued growth and demand. Redaptive's guaranteed energy and cost savings, risk management, and program funding have resulted in reduced energy emissions for scores of customers, as sustainable infrastructure rises as a global imperative. Thus far, Redaptive has enabled over $380 million in sustainability projects and a total energy reduction of 1.1 billion kilowatt-hours, which is equivalent to approximately 778,000 metric tons of CO2 or 1.8 million barrels of oil consumed.
"More companies are seeing the benefit of running their operations smarter, more efficiently, and more sustainably," said Jerry Keefe, a Principal at CarVal Investors. "Providing companies with a way to reduce their energy and carbon footprint and save on costs without having to spend any capital is the perfect innovation for times like these and we see a bright and bankable future for Redaptive and their model."
Redaptive's ability to lower facility maintenance costs, reduce grid reliance and perform data-driven energy efficiency retrofits is accelerating their customers' ability to exceed their sustainability goals while maintaining their bottom line. Current offerings include energy-efficient lighting and heating, ventilation and air conditioning (HVAC) systems, including boilers, chillers and rooftop units. With this funding, the company will be able to expand its offerings and deploy over $1 billion in new projects.
"We've achieved record sales this year, despite the global pandemic. By reducing costs for our customers we're seeing an increase in commitments from companies to make their facilities more efficient, resilient and sustainable," said Redaptive CEO Arvin Vohra.
Redaptive's Executive Chairman, John Rhow, added, "We thank CarVal, and our existing investors, for their support as we expand our offerings to meet the broader global need."
Redaptive enables large-scale rapid deployment of building efficiency technologies that reduce operational expenses and deliver immediate returns and long-term value across our customers' real estate portfolios. Our Efficiency-as-a-Service solution provides turnkey efficiency upgrades that include materials, installation and maintenance. Customers realize immediate utility bill savings and actual kWh savings verified through Redaptive's metering and building intelligence platform. Redaptive manages a global portfolio of efficiency programs for commercial and industrial customers, including Iron Mountain, Swedish Health Services, Sutter Home, Bentley Mills, SRS Distribution, New Senior, Avantor, Saint-Gobain, Aramark, McKesson, and more. Redaptive has headquarters in San Francisco and offices in Denver and Pune, India. For more information, please visit http://www.redaptiveinc.com.
About CarVal Investors
CarVal Investors is a leading global alternative investment fund manager focused on credit-intensive assets and market inefficiencies. Over the past four years, CarVal has invested more than $1.5 billion in assets and companies within clean energy and sustainability. Since 1987, CarVal's experienced team has navigated through ever-changing credit market cycles, opportunistically investing $123 billion in 5,480 transactions across 82 countries. Today, CarVal Investors has approximately $9 billion in assets under management in corporate securities, loan portfolios, structured credit and hard assets. For more information, visit http://www.carvalinvestors.com/.