Matrix entered the renewable energy sector in 2015 by partnering with experienced operator in community solar projects. Given the favorable returns, we decided to expand our exposure to capitalize on investment opportunities in the distributed energy generation and storage space for commercial and industrial scale users utilizing other technologies besides solar.
In 2017, we partnered with Alternative Energy Development Group (“AEDG”), a leading developer of industrial-scale clean energy projects, on the first of multiple Funds investing in renewable and alternative energy Projects that are sited at, or developed for, Commercial & Industrial client sites in the US, all with long term customer revenue contracts. The portfolio consists of a mixture of commercially proven energy technologies including Solar PV, Natural gas distributed generation (turbines and fuel cells), and Battery Energy Storage Systems (BESS). The Fund’s objective is to own and manage a portfolio of energy projects that in aggregate deliver a long term, predictable, tax efficient cash flow stream. We expect annual tax efficient cash distributions of 8-10% with an overall internal rate of return of 12-15% over the life of the Fund.