Chestnut Run Capital Partners, a Boston-based private credit firm, is providing a senior-secured loan to Dollaride for its Clean Transit Access Program, or CTAP, which aims to electrify New York City’s informal dollar van network and other public transportation that operate in the city’s transit deserts.
“This financing from Chestnut Run provides us with the flexible capital structure we need to execute our expansion strategy,” said Dollaride’s Su Sanni. In addition to dollar vans, Sanni says the expansion will focus on senior transport, paratransit and non-emergency medical transportation for local riders in urban neighborhoods underserved by New York’s subway and bus system.
“Su Sanni and the Dollaride team have been collaborative partners from the very beginning,” Chestnut Run’s Yeng Felipe Butler told ImpactAlpha. “Their business model is turnkey for fleet operators, making it very well positioned to scale. Their focus [on] New York City was also attractive to us.”
Butler declined to disclose the size of the loan. Dollaride’s Clean Transit program is also backed by Elemental Excelerator and the New York State Research and Development Authority, or NYSERDA.
Risk management
Chestnut Run found Dollaride through Zeti, a UK-based fintech that connects lenders with fleet operators of mobility and energy assets. As part of the transaction, Zeti will provide real-time risk monitoring support to Chestnut Run throughout the duration of the loan.
“The Dollaride-Chestnut Run transaction is a strong example of what becomes possible when innovative financing meets real-time asset intelligence,” said Zeti’s Jon Stafford. “Dollaride’s mission-driven approach to urban electrification and Chestnut Run’s commitment to active risk management made this a natural fit for Zeti’s platform.”
