Galvanize debuts $1.3 billion credit fund to finance renewable energy companies and projects

Galvanize, the investment firm launched by Tom Steyer, launched a $1.3 billion strategy to tap into the private credit trend.

The Credit and Capital Solutions fund will structure tailored financing for companies and projects in North America and Europe pursuing clean power and the energy transition more broadly. 

The fund will deploy bespoke financing to fill what Galvanize sees as a gap between bank debt and private credit markets, the firm’s John Delaney told ImpactAlpha.

“That’s the part of the market that is most attractive, but also helps unleash the most projects to advance the energy transition.” That includes “underserved segments” of the energy ecosystem, from mid-market developers and operators to large-scale infrastructure rebuilds.

The $1.3 billion was provided by an unnamed institutional investor.

“You should expect the strategy to launch other investment vehicles to pursue the same strategy, to work with our $1.3 billion investor,” said Delaney, who is a former member of Congress and specialty lending expert. He co-leads the new strategy with Chris Creed, a Goldman Sachs veteran and former chief investment officer of the US Department of Energy’s Loan Programs Office, which provides loans and loan guarantees to more energy projects toward commercialization.

For example, the Galvanize team’s pipeline includes an onshore US-based wind farm that will power data centers. The project has bank debt to finance for construction, but needs additional capital to finish the project.

“We’re looking at providing a strip of junior capital to help them bridge the gap between their bank loans and their equity,” Delaney said.

The Credit and Capital Solutions strategy adds to Galvanize’s investment offerings, which include venture and growth, real estate and public equities.