Alfa Energy Tax Equity Facility
Alfa Energy Tax Equity is a multi-investor tax equity facility (the "Facility") organized to provide tax equity capital for the rapidly growing C&I and utility-scale renewable energy space. The objective of the Facility is to catalyze the flow of more appropriately priced capital into renewable energy projects and provide tax equity investment opportunities to a broader set of mid-sized corporate entities and investors beyond the few large entities which currently dominate the space.
For Tax Equity Investors
The Facility is seeking mid-sized and non-traditional investors (corporate and financial institutions) that have not previously been able to access the renewable energy tax equity markets due to size and/or lack of expertise or capacity to analyze such investments.
- Facility investors will benefit in two ways - by reducing the effective federal income tax rate and generating a very attractive risk-adjusted after-tax return by investing, via the Facility, low-risk tax equity in renewable energy projects. Investor returns are primarily driven by tax benefits that have very limited exposure to project performance risk. As example, in solar projects over 90% of capital is returned in Years 1-2 almost exclusively from low-risk tax benefits.
- Investors have an option to invest directly on a stand-alone basis or be pooled together with other investors, if desired, based on tax strategy and desired diversification.
- The Facility will manage the investments through project flip or sell-down and provide the necessary reporting.
For Developers
Tax equity capital has been slow to flow into C&I space due to scale and variability of structures. Utility-scale projects are subject to traditional tax equity investors' inflexible structures and pricing terms that are not commensurate with risk. The Facility will provide more flexibility in terms of structure and pricing.
The Facility will provide tax equity financing to:
- C&I and utility-scale solar and wind projects and
- Project developers who seek a flexible and experienced tax equity investor with extensive expertise in tax equity structuring.
Management
The Facility is managed by Alfa Tax Equity Management LLC, whose management team is uniquely well-suited to execute on the capital deployment program having
- Significant industry experience and technical capabilities in valuing, structuring and placing tax equity into renewable energy projects
- Comprehensive approach to high-quality opportunity origination through established relationships with developers, investors, and industry experts
- Substantial fund management, project finance, and project development experience