38 Degrees North Announces Growth Equity Investment from S2G Ventures and 62 MWs of Community Solar Project Acquisitions

SAUSALITO, Calif., Jan. 24, 2024 /PRNewswire/ -- 38 Degrees North, a community solar and distributed renewables platform, has closed on a growth equity investment from S2G Ventures ("S2G"), a leading multi-stage investment firm focused on the energy transition, food, agriculture, and oceans. The company has also entered into an agreement to acquire community solar assets from Community Power Group ("CPG") in New York.

Founded in 2015 and based in Sausalito, California, 38 Degrees North is an established platform focused on development-stage and construction-ready distributed generation and community solar projects. To date, the company has successfully aggregated, financed, constructed, and managed over 400 MW across over 100 projects through partnerships with high-quality institutional investor partners.

With the investment from S2G, 38 Degrees North looks to accelerate its growth by partnering with local communities, customers, and community and distributed solar and storage developers to deploy capital into assets across the development spectrum. Leveraging its project finance expertise, the 38 Degrees North team aims to support developers and projects through the remainder of development and into operations. As a long-term owner of projects, 38 Degrees North works with developers in an open fashion to design tailored capital solutions and establish clear visibility to portfolio value creation.

As part of the transaction, S2G's Priyanka Duvvuru and Francis O'Sullivan will join 38 Degrees North's board of directors.

"S2G is excited to be partnering with the industry veterans at 38 Degrees North to help drive the next phase of the company's growth," said Priyanka Duvvuru, Principal at S2G. "We continue to be impressed by the management team's thoughtful structuring approach, extensive execution experience and demonstrated resilience through historical uncertainties in the solar market, which we believe positions the platform well for the future."

With the CPG agreement, 38 Degrees North will acquire a portfolio of 10 community solar projects totaling 62 megawatts in New York state. This partnership represents the first acquisition funded in collaboration with S2G and establishes a scaled foundation for the community solar platform as the company comes to the market for tax equity and debt raises in 2024.

"We believe creative capital solutions for developer partners are critical to enable the deployment of community solar and distributed renewables assets across the U.S.," said Ryan Bennett, Managing Director at 38 Degrees North. "S2G's flexible growth capital will allow us to support projects across the development spectrum and be the partner of choice for developers and communities across the market."

"We are thrilled to be partnering with S2G on the next evolution of our business," said Chris Bailey, Managing Director at 38 Degrees North. "We have the right team, culture and capital partnership to accelerate our growth in this highly dynamic market."

Added Jake Carney, the third founder and Managing Director of 38 Degrees North, "This growth capital provides us with flexible firepower to take compelling positions in distributed generation and community solar assets, while broadening our ability to innovate in new markets and technologies."

Norton Rose Fulbright was legal counsel for S2G and Vinson & Elkins served as 38 Degrees North's legal advisor.

About 38 Degrees North | 38 Degrees North is an experienced developer and operator specializing in distributed generation, community solar, and other middle market sustainable infrastructure assets. The managing partners have a track record of over 4 GW of successful renewable energy project development and financings across a variety of project technologies and stages of development. For more information, please visit: www.38degreesn.com.

About S2G Ventures | S2G Ventures partners with entrepreneurs who are working on solutions to some of the world's greatest challenges across the food, agriculture, oceans, and energy markets. The firm provides capital, mentorship, and value-added resources to companies pursuing innovative market-based solutions that generate positive social, environmental, and financial returns. S2G structures flexible capital solutions that can range from seed and venture funding through growth equity to debt and infrastructure financing. For more information about S2G, visit s2gventures.com or connect with us on LinkedIn.

About Community Power Group | Community Power Group ("CPG") has a seasoned staff of developers and engineers that specialize in greenfield, brownfield and commercial roof top solar development. Since 2012, CPG has been working with landowners, municipalities, non-profits and other agricultural groups to develop more than 500 MW of best-in-class and cost-effective solar projects throughout the Midwest and mid-Atlantic regions. For more information, please visit: www.communitypowergroup.com.

Media Contact:
Chelsea Hokenson
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SOURCE 38 Degrees North