HPS Investment Partners and Enhanced Capital announced today the launch of a new partnership between funds managed by HPS Investment Partners and Enhanced Capital that will provide structured capital solutions for renewable energy and battery energy storage projects throughout the United States. These investments will provide catalytic 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."
"For over two decades, Enhanced Capital has been financing projects with immediate and lasting impacts on communities and the environment," said Ed Rossier, Managing Director at Enhanced Capital. "The HPS partnership will significantly expand our renewable energy and battery storage financing for developers across the country."
