13 January 2021
Riverstone Energy Limited Announces Commitment of $25 million to Loanpal, LLC
London, UK (13 January 2021). RIGL Holdings, LP ("Riverstone"), the Manager of Riverstone Energy Limited ("REL"), has announced the signing of an agreement for REL to invest $25 million in Loanpal, LLC ("Loanpal"), the leading sustainable home improvement fintech provider used in over half of US residential solar system sales. Riverstone Global Energy & Power Fund VI also participated in the transaction, investing $50 million for a total investment of $75 million from Riverstone affiliated investment vehicles.
Loanpal is a San Francisco based technology-enabled sustainable home improvement loan originator, providing a point-of-sale lending platform used by key residential contractors. Loanpal does not take funding risk, the company presells its originated loans via forward purchase agreements to large funds managed by asset managers including Blackstone and Goldman Sachs. The company's attractive unit economics and asset-light business model allow for rapid growth and the ability to scale faster than its competitors, while generating free cash flow by capitalizing on upfront net cash payments on the flow or loan originations and avoiding costly SG&A and capital expenditures incurred by other portions of the value chain.
The investment supports broad decarbonization, decentralization of zero carbon energy generation, consumer reliability of diverse energy sources, and distributed and decentralized generation. Solar costs have plummeted in the last 10 years and are continuing to decline making residential solar a cost reducing value proposition for many US regions. Additionally, the trend to encourage the greening of the economy - and especially in Sunbelt state legislatures - is expected to continue to support the category as seen with the recent extension of investment tax credits that support the sector. Loanpal provides a scalable solution for large funds managed by asset managers to generate exposure to quality green credit. Given the company's current market share and profitability underpinned by the growth rate of distributed residential generation and energy storage, we believe Loanpal is poised for growth from our attractive entry valuation. In addition, the company is well-positioned to expand lending volumes into home improvement/efficiency markets, which are likely to increase as global economies work towards decarbonization goals.
The Loanpal investment represents REL's continued focus on originating and executing investments that support the portfolio's focus on environmental, social and governance considerations, while also providing the opportunity to generate strong returns for Shareholders. Going forward, REL expects to continue executing upon its modified investment approach to further position the portfolio to capitalise on energy transition tailwinds.
About Riverstone Energy Limited:
REL is a closed-ended investment company that invests exclusively in the global energy industry across all sectors. REL aims to capitalise on the opportunities presented by Riverstone's energy investment platform. REL's ordinary shares are listed on the London Stock Exchange, trading under the symbol RSE. REL has 10 active investments spanning oil and gas, renewable energy and power in the Continental U.S., Western Canada, Gulf of Mexico and Europe.
For further details, see www.RiverstoneREL.com
About Riverstone Holdings LLC:
Riverstone is an energy and power‐focused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with approximately US$41 billion of capital raised. Riverstone conducts buyout and growth capital investments in the E&P, midstream, oilfield services, power, and renewable sectors of the energy industry. With offices in New York, London, Houston, Mexico City, Amsterdam and Menlo Park, Riverstone has committed over US$41 billion to more than 195 investments in North America, Latin America, Europe, Africa, Asia, and Australia.
For further details, see www.RiverstoneLLC.com
Neither the contents of Riverstone Energy Limited's nor Riverstone Holdings' websites nor the contents of any website accessible from hyperlinks on the websites (or any other website) is incorporated into, or forms part of, this announcement.
For Riverstone Energy Limited:
+1 212 271 6261