NEW YORK, NY – January 11, 2022 – Global Infrastructure Partners (GIP), together with its co-investors, announced that it has closed on a $500 million investment in independent power producer (IPP) BrightNight, LLC, a leading renewable power company. BrightNight’s mission is to provide next generation power solutions by combining multiple renewable technologies and thereby enabling its customers to accomplish deeper decarbonization of their generation portfolio. The company’s development pipeline utilizes hybridized solutions across the U.S. with a diverse set of resources, including solar and storage, as its center piece capability. The investment in BrightNight, which was founded by seasoned renewable energy leader and entrepreneur Martin Hermann, comprises Preferred Equity, including a Letter of Credit facility.
GIP is making the investment through Global Infrastructure Partners Capital Solutions Fund II (GIP CAPS II), part of its Credit platform, GIP Credit. The investment represents the fourth commitment made by GIP CAPS II. The CAPS strategy provides customized capital solutions for infrastructure projects and companies in GIP’s core sectors of power, renewables, energy transition, digital, midstream energy, transportation and water/waste, while leveraging GIP’s significant operating expertise.
The Preferred Equity provides flexibility for the funding of BrightNight’s development efforts as well as meeting equity funding needs during the construction and operations of projects. In addition, the Letter of Credit Facility will provide committed capacity for BrightNight to issue Letters of Credit as necessary to further the development, construction, and operations of its project pipeline. Overall, the new capital facility provided by GIP’s investment will allow BrightNight, as an IPP, to offer its customers a single point of service from development through operations.
James Amine, GIP Partner and member of GIP’s Executive Committee, said: “We are thrilled about the opportunity to support Martin and the BrightNight team with this strategic investment that will enable BrightNight to realize its ambitious development efforts in the U.S. BrightNight’s philosophy to deliver innovative renewable power solutions aligns closely with our view of what’s required to be successful in such high growth but increasingly competitive renewable power markets. The transaction is also in line with GIP’s firmwide strategy of investing in differentiated infrastructure platforms with high growth potential and strong management teams.”
Martin Hermann, CEO at BrightNight, added: “We have long admired GIP’s deep experience and track record in the industry and are very happy to have formed this partnership. GIP’s support will enable us to rapidly deliver innovative power solutions like 24×7 structured products and dispatchable systems optimized to competitively replace non-renewable baseload generation. We’re excited to confidently continue our path to becoming an industry leading IPP.”
Milbank LLP provided legal counsel to GIP. PJT Partners acted as financial advisor to BrightNight. Taft Stettinius & Hollister LLP and Schulte Roth & Zabel LLP acted as legal counsel for BrightNight.
About Global Infrastructure Partners
Global Infrastructure Partners (GIP) is a leading independent infrastructure fund manager that makes equity and debt investments in infrastructure assets and businesses. GIP targets investments in the energy, transport, digital infrastructure, and water/waste sectors in both OECD and select emerging market countries. GIP’s teams are located in 10 offices: London, New York, Stamford (Connecticut), Sydney, Melbourne, Brisbane, Mumbai, Delhi, Singapore and Hong Kong. GIP Credit provides financing solutions and makes debt and non-common equity investments in infrastructure assets and companies. For more information, visit www.global-infra.com.