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ESG investor Galway Sustainable Capital closes new USD265m funding from Oaktree

Galway Sustainable Capital (GSC) has entered into a new, broad-based funding partnership with funds managed by Oaktree Capital Management,  (Oaktree). 

Under the terms of the deal, GSC secured a minority equity investment and closed a new, multi-year, multi-tranche credit facility with Oaktree. GSC is private equity backed by lead investor Cordillera Investment Partners. GSC was founded in 2020 by three experienced ESG professionals who collectively bring over 50 years of expertise in structured finance, sustainable infrastructure, and yield-oriented investments. GSC provides flexible, full stack debt and equity capital solutions to support companies, developers and sponsors that are accelerating the transition to environmental and social sustainability.

GSC focuses on critical infrastructure across the United States including distributed renewable energy, circular economy, carbon remediation, energy efficiency and green buildings, sustainable agriculture, land and water as well as opportunities that provide social benefits. GSC is focused on modular, distributed and localised projects with typical individual investments of $50 million and under. GSC has active platform investments in areas such as greenhouses, energy efficient data centers, green building solutions, distributed power and storage, waste recycling and carbon capture and sequestration.

The goal of the GSC enterprise is to advance the cause of businesses that have strong sustainability values with a focus on environment, climate change, and social impacts. 

“We are pleased to expand our GSC partnership to include Oaktree to help us scale our business and broaden our reach. Oaktree’s team has an outstanding track record of building successful financial institutions. With their infusion of capital and alignment around our ESG goals we look forward to growing this platform to its full potential while accelerating the transition to greater resilience and sustainability,” says Jennifer von Bismarck, CEO and co-founder of Galway Sustainable Capital.

“Our partnership is a direct result of GSC’s thoughtful approach to sustainability and disciplined process for originating and underwriting high quality investments,” says Brian Laibow, Managing Director and Co-head of North America for the Opportunities strategy at Oaktree.

With the addition of the Oaktree investment, GSC is well positioned to improve capital access in distributed infrastructure projects nationwide. “Access to properly aligned early deployment capital continues to be a major challenge for emerging climatech and ESG companies,” says GSC President and co-founder Trent Yang. “We have structured our business to be aligned with our partners both from a capital and mission perspective. With this added funding capacity, GSC can provide solutions to an expanded number of qualified companies, developers, and projects nationwide.”

“Oaktree’s investment further confirms the depth of demand for GSC’s capabilities and the growing attractiveness of the ESG sector from the institutional investor perspective,” says Rob Bolandian, Partner and Global Head of Investment Banking at Cambridge Wilkinson, who served as financial advisor to GSC on the transaction.

“We are pleased to have completed this financing for GSC, an industry leader in providing distributed infrastructure capital for select ESG projects,” says Chris Heller, Managing Partner at Cordillera Capital. “We look forward to supporting the company in its plans for ongoing success.”

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