Starwood Sustainable Credit committed to invest up to, and potentially more than, $500 million in CleanFund, a commercial property-assessed clean energy, or C-PACE, origination platform.
Entities affiliated with Vulcan Capital also made a follow-up investment in CleanFund, after having made an initial investment in 2017.
CleanFund also named Lain Gutierrez as CEO. Gutierrez is the founder of SolFin Capital LLC, which finances solar arrays in residential developments.
Clean Fund provides long-term financing for energy efficiency, water conservation, renewable energy and seismic improvements to commercial, multifamily and other nonresidential properties in the U.S.
Starwood Sustainable Credit is an affiliate of Starwood Capital Group, and it is initially focused on providing capital funding for C-PACE financing. C-PACE, according to the U.S. Department of Energy's website, is a financing structure in which building owners borrow for energy efficiency, renewable energy and related projects, and make repayments through an assessment on their property taxes.