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P10 Inc (NYSE: PX) announced a strategic partnership between HPS Investment Partners and Enhanced Capital to provide structured capital solutions for renewable energy and battery storage projects across the United States. The partnership will leverage the Inflation Reduction Act’s provisions for tax credit transfers, simplifying the monetization of renewable energy tax credits without complex tax equity structures. This collaboration combines HPS Investment Partners’ renewable energy investment experience with Enhanced Capital’s expertise in tax credit structuring and monetization to support economy-wide decarbonization goals.
P10 Inc (NYSE: PX) ha annunciato una partnership strategica tra HPS Investment Partners e Enhanced Capital per fornire soluzioni di capitale strutturato per progetti di energia rinnovabile e stoccaggio di batterie in tutta gli Stati Uniti. La partnership sfrutterà le disposizioni dell’Inflation Reduction Act per il trasferimento dei crediti d’imposta, semplificando la monetizzazione dei crediti d’imposta per l’energia rinnovabile senza strutture complesse di capitale fiscale. Questa collaborazione unisce l’esperienza di investimento in energia rinnovabile di HPS Investment Partners con l’expertise di Enhanced Capital nella strutturazione e monetizzazione dei crediti d’imposta per sostenere gli obiettivi di decarbonizzazione dell’intera economia.
P10 Inc (NYSE: PX) anunció una asociación estratégica entre HPS Investment Partners y Enhanced Capital para proporcionar soluciones de capital estructurado para proyectos de energía renovable y almacenamiento de baterías en los Estados Unidos. La asociación aprovechará las disposiciones de la Ley de Reducción de la Inflación para la transferencia de créditos fiscales, simplificando la monetización de los créditos fiscales de energía renovable sin estructuras complejas de capital fiscal. Esta colaboración combina la experiencia en inversión en energía renovable de HPS Investment Partners con la pericia de Enhanced Capital en la estructuración y monetización de créditos fiscales para apoyar los objetivos de descarbonización de la economía en su conjunto.
P10 Inc (NYSE: PX)는 HPS Investment Partners와 Enhanced Capital 간의 전략적 파트너십을 발표하여 미국 전역의 재생 에너지 및 배터리 저장 프로젝트에 대한 구조적 자본 솔루션을 제공하기로 하였습니다. 이 파트너십은 세액 공제 이전을 위한 인플레이션 감소 법의 조항을 활용하여 복잡한 세액 자본 구조 없이 재생 에너지 세액 공제의 수익화를 단순화할 것입니다. 이 협력은 HPS Investment Partners의 재생 에너지 투자 경험과 Enhanced Capital의 세액 공제 구조화 및 수익화 전문성을 결합하여 경제 전반의 탈탄소화를 지원합니다.
P10 Inc (NYSE: PX) a annoncé un partenariat stratégique entre HPS Investment Partners et Enhanced Capital pour fournir des solutions de capital structuré pour des projets d’énergie renouvelable et de stockage de batteries à travers les États-Unis. Ce partenariat va tirer parti des dispositions de la Loi sur la réduction de l’inflation pour le transfert de crédits d’impôt, simplifiant la monétisation des crédits d’impôt pour l’énergie renouvelable sans des structures de capital fiscal complexes. Cette collaboration combine l’expérience de HPS Investment Partners dans l’investissement en énergie renouvelable avec l’expertise d’Enhanced Capital en structuration et en monétisation des crédits d’impôt pour soutenir les objectifs de décarbonisation de l’économie dans son ensemble.
P10 Inc (NYSE: PX) gab eine strategische Partnerschaft zwischen HPS Investment Partners und Enhanced Capital bekannt, um strukturierte Kapitallösungen für Projekte im Bereich erneuerbare Energien und Batteriespeicher in den Vereinigten Staaten bereitzustellen. Diese Partnerschaft wird die Bestimmungen des Inflation Reduction Act zur Übertragung von Steuergutschriften nutzen und die Monetarisierung von Steuergutschriften für erneuerbare Energien ohne komplexe steuerliche Eigenkapitalstrukturen vereinfachen. Diese Zusammenarbeit kombiniert die Erfahrung von HPS Investment Partners in der Investition in erneuerbare Energien mit der Expertise von Enhanced Capital in der Strukturierung und Monetarisierung von Steuergutschriften, um die Ziele der Dekarbonisierung der gesamten Wirtschaft zu unterstützen.
Positive
- Strategic partnership established to provide structured capital solutions for renewable energy projects
- Leverages IRA tax credit provisions to simplify project financing
- Expands P10’s presence in the growing renewable energy sector
Insights
This strategic partnership represents a significant development in renewable energy financing, capitalizing on the Inflation Reduction Act’s tax credit transferability provisions. The collaboration combines HPS Investment Partners’ robust credit investment capabilities with Enhanced Capital’s tax credit expertise, creating a streamlined approach for renewable project financing. The partnership’s innovative structure eliminates complex tax equity arrangements, potentially accelerating project development timelines and reducing transaction costs.
For P10 shareholders, this initiative opens up new revenue streams in the growing renewable energy sector. The simplified tax credit monetization process could lead to increased deal flow and fee generation. The partnership leverages P10’s existing infrastructure through Enhanced Capital while expanding its market reach through HPS’s established presence in infrastructure investments. This positions P10 to capture a larger share of the renewable energy financing market, particularly as IRA-driven investments continue to accelerate.
The partnership addresses a critical gap in renewable energy project financing by streamlining the tax credit monetization process. The IRA’s transferability provision for Investment Tax Credits and Production Tax Credits represents a fundamental shift in renewable energy financing. This new platform could significantly accelerate project development cycles by removing traditional tax equity structuring complexities.
The timing is particularly strategic as the U.S. energy storage market is experiencing rapid growth, with projections showing substantial expansion through 2030. By focusing on both renewable energy and battery storage projects, the partnership is well-positioned to capture market share in two high-growth sectors. The simplified financing structure could particularly benefit mid-sized developers who historically faced challenges accessing traditional tax equity markets.
DALLAS, Nov. 25, 2024 (GLOBE NEWSWIRE) — P10, Inc. (NYSE: PX), a leading private markets solutions provider, announced the launch of a new partnership between funds managed by HPS Investment Partners and Enhanced Capital, a P10 affiliated manager, that will provide structured capital solutions for renewable energy and battery energy storage projects throughout the United States. The investments made by the partnership will be designed to provide capital to energy transition projects while simplifying the monetization of renewable energy tax credits without the need for complex tax equity structures.
The Inflation Reduction Act (IRA) passed in 2022 contained several provisions aimed at improving access to capital and reducing barriers to the deployment of renewable energy and energy storage assets to support economy-wide decarbonization goals. As part of the legislation, Investment Tax Credits and Production Tax Credits became eligible for a one-time transfer to third parties, creating a new avenue to monetize tax credits outside of tax equity financings. The new platform combines HPS Investment Partners’ track record of investing in renewable energy and infrastructure businesses and assets with Enhanced Capital’s expertise in tax credit structuring and monetization.
“We are pleased to partner with Enhanced Capital to offer comprehensive capital solutions for developers who are actively enabling the energy transition across the country,” said Michael Dorenfeld, Managing Director at HPS Investment Partners. “With this commitment, we are bringing together HPS credit investment expertise with Enhanced Capital’s capabilities accessing and funding tax credits across industries.”
“Enhanced Capital has been financing projects with immediate and lasting impacts on communities and the environment for over two decades,” said Luke Sarsfield, Chairman and Chief Executive Officer at P10. “At P10, we are thrilled to see this collaboration with HPS Investment Partners expand renewable energy and battery storage financing for developers across the country.”
About HPS Partners
HPS Investment Partners, LLC is a leading global, credit-focused alternative investment firm that seeks to provide creative capital solutions in order to generate attractive risk-adjusted returns for its clients. HPS manages various strategies across the capital structure, including privately negotiated senior debt; privately negotiated junior capital solutions in debt, preferred equity and equity formats; liquid credit including syndicated leveraged loans, collateralized loan obligations and high yield bonds; asset-based finance and real estate. The scale and breadth of HPS’s platform offers the flexibility to invest in companies large and small, through standard or customized solutions. HPS has approximately $117 billion of assets under management as of June 2024. For more information, please visit www.hpspartners.com.
About Enhanced Capital
Enhanced Capital Group, LLC is a leading impact investment firm with over 24 years of experience investing in Climate Finance, Impact Real Estate, and Small Business Lending.
From inception in 1999 through June 30th, 2024, inclusive of proprietary assets and assets managed by affiliates, Enhanced Capital has raised a total of $6.0 billion. Of the total assets under management, impact assets represent $3.8 billion invested in over 950 projects and businesses throughout 40 states, Washington DC, and Puerto Rico and does not include investments made by non-impact affiliates.
Enhanced Capital is committed to investing in four main impact themes: Underserved Communities; Underrepresented Populations; Environmental Sustainability; and Community Development Programs. Enhanced Capital is a subsidiary of P10, Inc. (NYSE: PX), a diversified, multi-asset investment platform. For more information, please visit www.enhancedcapital.com.
Enhanced Capital Disclaimer
Enhanced Capital Group, LLC, and its affiliates, is an Equal Opportunity Provider. The information presented is for discussion purposes only and is neither an offer to sell nor a solicitation of any offer to buy any securities, investment product, or investment advisory services. This is not an offering or the solicitation of an offer to purchase an interest in a fund.
About P10
P10 is a leading multi-asset class private markets solutions provider in the alternative asset management industry. P10’s mission is to provide its investors differentiated access to a broad set of investment solutions that address their diverse investment needs within private markets. As of September 30, 2024, P10’s products have a global investor base of more than 3,800 investors across 50 states, 60 countries, and six continents, which includes some of the world’s largest pension funds, endowments, foundations, corporate pensions, and financial institutions. Visit www.p10alts.com.
P10 Investor Contact:
info@p10alts.com
P10 Media Contact:
Taylor Donahue
pro-p10@prosek.com
FAQ
What is the purpose of P10’s (PX) new partnership with HPS Investment Partners?
The partnership aims to provide structured capital solutions for renewable energy and battery storage projects across the United States, simplifying the monetization of renewable energy tax credits.
How does P10’s (PX) new partnership utilize the Inflation Reduction Act?
The partnership leverages IRA provisions that allow Investment Tax Credits and Production Tax Credits to be transferred to third parties, creating new avenues for tax credit monetization outside traditional tax equity financings.
What expertise does each partner bring to P10’s (PX) renewable energy initiative?
HPS Investment Partners brings expertise in renewable energy and infrastructure investments, while Enhanced Capital contributes tax credit structuring and monetization capabilities.
