Houston-based Spruce Finance, an owner and operator of distributed solar and residential energy assets in the U.S., has acquired a significant portfolio of residential solar.
The acquisition, consisting of 2,169 residential solar systems totaling 12.1 MW, was closed on Wednesday. The purchase brings Spruce’s portfolio of operational solar assets to 173 MW, consisting primarily of residential solar, serving over 25,000 customers across 11 states.
The transaction follows a recent $50 million equity investment from Spruce’s owner, HPS Investment Partners, a global investment firm with over $48 billion of assets under management, as well as a $208 million debt financing completed earlier this year.
“This acquisition reflects Spruce’s strategy of expanding by acquiring seasoned solar portfolios and adding value through best-in-class servicing,” says Christian Fong, president and CEO of Spruce Finance.
The new assets will be serviced by Spruce’s independent subsidiary, Energy Service Experts (ESE), which provides asset management services to more than $1 billion of residential solar assets. Houston-based ESE manages both Spruce’s own assets and third-party-owned portfolios. Spruce’s latest acquisition enables further expansion and efficiencies for ESE.