Budderfly is targeting clean energy technology adoption across the mid-market with a $400 million senior debt facility originated by Vantage Infrastructure. The financing was co-led by Vantage and the Energy Infrastructure Credit team at Nuveen, with $200 million to Budderfly at close and an option for Budderfly to access an additional $200 million in financing.
An Energy as a Service (EaaS) company, Budderfly is a sustainability partner for restaurant chains, assisted living facilities, retail franchises, and more. The company upgrades and installs energy-efficient equipment, such as new HVAC systems, air quality management, LED lighting, refrigeration, smart panels, sensors and controls, and solar, for customers with repeat footprints.
The mid-market target is comprised of small- and mid-sized commercial and non-industrial facilities, and the capital will enable Budderfly to identify and deploy energy-saving technologies to commercial buildings in need of decarbonization.
Building Emissions
The financing comes as buildings, including commercial and residential, account for roughly 29% of total United States greenhouse gas emissions. Plus, emissions from buildings are still growing as electricity needs continue to rise, according to the International Energy Agency.
“Successfully decarbonizing our economy will require efforts from organizations of all sizes — from established commercial giants to the millions of business owners operating in the mid-market. The critical difference between these two segments is that the mid-market often lacks the resources needed to get the job done,” Al Subbloie, CEO and founder of Budderfly, said in a statement. “This investment from Vantage and Nuveen helps to fuel our approach to bring customized energy solutions to businesses with repeatable footprints, which collectively present a significant opportunity to slash emissions. Our mission remains clear: to accelerate the mid-market energy transition.”
Budderfly offers its service to its partners without upfront costs, and generates energy cost savings from the energy-efficient upgrades, as well as managing, monitoring, and optimizing energy use and demand.
The company partnered with Fujitsu General America last year to leverage energy efficiency technologies, including HVAC systems, for small and medium commercial buildings.
“We are thrilled to provide financing to support a business that provides a much needed low carbon solution for Budderfly’s resilient and diversified customer base,” Don Dimitrievich, portfolio manager of Nuveen’s Energy Infrastructure Credit business, said in a statement. “One of our key underwriting fundamentals includes backing experienced management teams, which we’ve found here with Budderfly.”
