Investment Fund Scoops Up Renewables Developer

January 12, 2016

I Squared Capital, through its ISQ Global Infrastructure Fund, has acquired Lincoln Clean Energy (LCE), a developer, owner and operator of wind and solar power projects in North America. Notably, the companies suggest the newly extended U.S. renewable energy tax credits make the partnership even more appealing.

With the new backing from I Squared, LCE plans to deploy $250 million in equity investments to support its next phase of growth in North America through 2018. The transaction includes an operating solar facility in southern New Jersey and LCE’s development and asset management platforms, including a project development pipeline.

Founded in 2009, LCE has developed more than $1.5 billion of clean energy projects totaling 1 GW across North America. Declan Flanagan, founder and CEO, is the former CEO of Airtricity North America. He went on to become CEO of E.ON Climate & Renewables following the 2007 acquisition of Airtricity North America and is a former board member of both the American Wind Energy Association and the Solar Energy Industry Association. The LCE team includes 18 professionals, and the developer’s management team will remain the same.

“The Lincoln team is extremely excited to work with I Squared Capital,” says Flanagan. “This partnership allows us to enhance both execution and value creation while we capitalize on the tremendous market opportunity before us.”

According to the companies, the U.S. renewables industry received a regulatory boost following the recent five-year extensions of the investment tax credit for solar energy and the production tax credit for wind power.

“This is an opportune time to invest in the renewable energy sector, and we are delighted to partner with Lincoln’s high-caliber management team, with its proven track record in the development and management of clean energy projects,” says Adil Rahmathulla, partner at I Squared Capital.

“Lincoln’s operational experience and track record, combined with I Squared Capital funding and expertise, positions Lincoln to become a premier renewables generation company in the U.S.”