Mercatus announces it’s closed its Series A round of financing with investment from Trepp, LLC. The company is creating the solar industry’s first credit-score equivalent for solar energy projects.
Mercatus, Inc. is featured in the news today in yet another important financial story for the solar industry.
According to the company, the renewables industry has needed an interface to facilitate investments by the many potential large investors in energy projects. Their enterprise-level investment analysis and decision-making platform is used as an “operating system” for solar energy investors. In providing a way to standardize deals, their platform helps energy investors assess projects and organize their work.
The company announced today that it has closed its Series A round of financing led by Trepp, LLC, a provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets.
“Trepp’s investment in Mercatus is the result of our extensive research into the growing market for comprehensive data and real-time market intelligence for investment in solar energy assets,” said Dan Gottlieb, Chief Operating Officer of Trepp, who is now a Board Member of Mercatus. “It was clear that Mercatus was the leader providing the platform and tools to streamline and standardize the investment process.… Trepp anticipates being able to help support expanding the availability of Mercatus’ non-proprietary data collected in its platform to help accelerate the entry and scale of the capital markets continuing to invest in the solar asset class.”
Over the last 18 months, the costs of technology and installation for solar and other renewables have fallen dramatically. But the costs of financing remain high. Developers are challenged with attracting capital. Energy investors, on the other hand, are lacking the resources, best practices, and in some cases, domain expertise to make expedient decisions, and as a result, are not deploying capital.
The underlying Mercatus platform and process features a rich information database and analytics engine consisting of over 10 GW of commercial, industrial, and utility distributed generation solar assets. This cumulative database tracks 570 unique attributes on each project, providing the broadest pre-investment dataset available.
“As Wall Street begins to eye the industry as an emerging asset class, a sophisticated enterprise platform solution for end-to-end investment analysis, due diligence, underwriting and securitization will be needed across the growing residential and commercial investor segments to help the industry reach its full potential,” said Haresh Patel, CEO of Mercatus. “The Mercatus platform incorporates due diligence and underwriting best practices of the top 50 global financial organizations worldwide and has provided its credit and risk rating to over 1,400 commercial and industrial projects to date. This comprehensive solution allows lenders and capital market investors the ability to harness the strength of the Mercatus investment analysis and analytics platform to ultimately create better liquidity and capital flows for projects or portfolios.