Beverly, Mass.-based Highland Electric Fleets offers electric buses and charging solutions to school districts looking to cut pollution and save costs. With projects in 30 states, from Compton in Southern California to Dixie County, Florida, it is one of the largest such providers in the US. Highland will also supply 500 electric buses for the Olympics in Los Angeles in 2028.
To fuel its expansion, the company secured $150 million in equity this week from Aiga Capital Partners, a minority-owned firm that provides flexible financing for sustainable infrastructure companies.
“Highland’s electrification-as-a-service model, supported by long-term contracts and a high-quality asset base, positions the company to lead the next chapter of fleet electrification,” said Aiga Capital’s Angel Fierro.
Aiga raised $240 million for its debut sustainable infrastructure fund in September, 2024.
Greening communities
Electric school buses were poised to take off with the Greenhouse Gas Reduction Fund, a $27 billion program created by the Biden administration to stand up a network of lenders for green projects in low-income communities. That program is caught up in legal battles, but many states, including California, Texas and New York, offer grants and subsidies for electric buses. The 2021 Bipartisan Infrastructure Act also allocated $5 billion for electric school buses.
Last November, the Coalition for Green Capital, a GGRF awardee, approved a $75 million loan to Highland to finance the rollout of 1,300 electric buses in US school districts.
Highland says it has raised approximately $200 million in construction debt and tax advantaged financing over the past three years, as well as revenue from customers. The fresh capital, said Highland CEO Duncan McIntyre, “strengthens our balance sheet and allows us to execute on large-scale, long-term contracts with our school district and municipal partners.”
