Renovate America Closes $90M Equity Investment

SAN DIEGO—Renovate America, the fastest-growing provider of financing for energy- and water-efficient home improvements in the US, says it raised $90 million in growth equity from new and existing investors.  The round was led by DFJ Growth and included Silver Lake Kraftwerk, as well as existing investors RockPort Capital Partners, Valor Equity Partners, DB Masdar, and 400 Capital Management.  The equity investment will be used to support Renovate America’s growth, and expand its geographic footprint. 

The investment comes soon after President Barrack Obama highlighted PACE (Property Assessed Clean Energy) at the National Clean Energy Summit as an important tool to help accelerate an American clean energy “revolution.” In conjunction with the President’s endorsement, the Federal Housing Administration will develop guidance to approve mortgages on properties that have PACE financing so that any remaining balance of an assessment may remain with a property when it changes hands.  The FHA will be issuing guidance that includes subordinating PACE to the first mortgage holder.  The National Association of Realtors immediately expressed support for the FHA’s action.