Greenbacker Renewable Energy Energy Company LLC (GREC) revealed that it has finished the purchase (the “Acquisition”) of Greenbacker Capital Management, LLC (GCM), an SEC-registered investment adviser, and some connected firms by GREC’s subsidiary company, Greenbacker Renewable Energy Corporation (Greenbacker). Greenbacker will become a completely integrated and internally ran firm as a result of the acquisition, with its internal executive leadership team (Management) and other staff to control its business and operations.
In favor of the acquisition, Greenbacker CEO Charles Wheeler stated:
“We think that the merits of this transaction will enable us to expand on the strong foundation we’ve established, allowing us to explore new and exciting opportunities that will generate value for our shareholders. Bringing the funds’ management firm into GREC will allow us to keep raising and distributing capital in areas that are aligned with our mission, while also increasing our potential to positively affect the major environmental and social concerns we face as a community. As long-term owners and operators, our mission is to stay ahead of the curve, predict new opportunities, provide flexible investment options, and form long-term relationships in order to shape the energy future. This acquisition will assist us in realizing our goal.”
The Acquisition was made possible via a contribution deal between GREC and GCM’s parent company, Greenbacker Group LLC, as well as other agreements.
Group as well as a special committee of GREC’s Board, comprising completely of independent members, negotiated the deal on an arm’s length foundation (the Special Committee). The Special Committee evaluated, negotiated, and authorized the terms & conditions of the Acquisition, with the help of competent legal counsel as well as financial experts. On the suggestion of the Special Committee, the Acquisition was unanimously authorized by the Special Committee as well as GREC’s full Board of Directors.
Benefits of a Possible Transaction
The completely integrated and internally managed firm that results from the deal will provide a platform that can reap the benefits of many market possibilities while decreasing GREC’s expenses and enhancing its profitability, according to management.
GREC was conceived as an externally managed corporation that would end up making financial investments largely in the operation of renewable energy power facilities when it was established in 2014. Since then, Management’s competencies have expanded to cover procurement, construction management, technical asset management, and late-stage renewable energy project development. GREC has evolved from its initial periods as a strictly financial investor as a result of this evolution.
GREC, according to management, now has many of the skills and characteristics of IPPs (Independent Power Producers), a rapidly developing segment of the power generation industry that is classed as non-utility power generators. GREC, according to management, should adopt the corporate structure used by other IPPs, specifically, a corporate structure in which senior management is exclusive to the IPP and concentrates on growing companies that benefit the IPP’s shareholders. GREC will continue to own and run renewable energy assets as an IPP while simultaneously expanding its fund management business with the help of Greenbacker’s newly integrated transaction team, capital raising group, accounting group, technical asset management group, as well as finance team.