Pension funds power Generate Capital’s $1.5 billion sustainable infrastructure raise

ImpactAlpha Editor

Amy Cortese

ImpactAlpha, Feb. 1 – The infusion of equity capped more than a year of fundraising by San Francisco-based developer, operator, owner and financier of sustainable infrastructure. “While the window for action is getting smaller every day, we have the blueprints to build the critical infrastructure that will ensure a livable future,” said Generate Capital’s Scott Jacobs.

The blueprints include renewable power and electrifying municipal fleets as well as less sexy areas like grid resilience and waste upcycling. New investors included the California State Teachers’ Retirement System, or CalSTRS and Australian pension fund HESTA. Existing investors QIC and AustralianSuper re-upped.

The fundraise follows a $2 billion injection in 2021, and brings Generate’s total capital raised since 2014 to $10 billion. 

One-stop shop

Generate, a rare infrastructure Public Benefit Corp, has built a set of offerings and partnerships to underpin the energy transition. It has created joint ventures with McKinstry to provide turnkey energy services to municipalities, universities, schools, and hospitals, and with Blue Bird Corporation for electric busses, for example. The company says its infrastructure has generated 320 gigawatts of clean power and processed more than 715 kilotons of organic waste.

The fresh funding “means that we can build more sustainable infrastructure assets, faster, and we can partner with more leaders of the energy transition,” Jacobs told ImpactAlpha. “It means we can deploy more renewable power, more battery storage, more food waste upcycling, more renewable natural gas, more green hydrogen, more microgrids, more electric school buses, and more energy smart school districts.”