An affiliate of Fundamental Advisors, an alternative asset manager focused on municipal, public purpose and community assets, completed its acquisition of MMA Capital Holdings, an infrastructure finance company focused on providing debt financing for renewable energy projects, in an all-cash transaction valued at approximately $162 million.
Following the transaction, MMA Capital Holdings’ team will operate as Fundamental Renewables, the newly established renewable and clean energy investment arm of Fundamental Advisors. The team will continue to focus on growing its core solar development and construction lending strategy, with the added flexibility provided by the Fundamental platform to offer new and complementary financing solutions outside of its traditional solar lending business. Bob Hopper, the founder of the MMA Capital Holdings’ renewables business, MMA Energy Capital, will join Fundamental Renewables and will continue to oversee the long-term strategic direction of the platform.
“This is an exciting next step for the unique business we have been building, and we could not have asked for a better platform to support our team and our customers in the next phase of our evolution,” Hopper said. “In the next decade, the demand for solar installations is expected to grow rapidly. We are confident this transaction will enhance our capability to offer more efficient and flexible financing solutions across a broader array of renewable energy asset classes to meet the needs of existing and new customers alike.”
“Having known and worked with Bob and his team for a number of years, we are excited to move forward together in pursuit of our shared vision of generating attractive risk-adjusted returns for our investors while promoting the development of clean energy,” Laurence Gottlieb, chairman and CEO of Fundamental Advisors, said. “In the midst of growing demand for renewable energy solutions and an increasingly environmentally conscious nation, this transaction positions Fundamental as an industry leader at the forefront of the renewable energy financing sector.”
Houlihan Lokey served as financial advisor and Sidley Austin served as legal advisor to Fundamental Advisors.
