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Budderfly inks $400M loan for energy retrofits from Nuveen, Vantage

Illustration of a thermostat with a dollar sign in place of the temperature

Illustration: Annelise Capossela/Axios

Investment manager Vantage Infrastructure and asset manager Nuveen have agreed to provide up to $400 million in financing to energy upgrade provider Budderfly, the company announced this morning.

Details: Vantage and Nuveen agreed to loan Budderfly an initial $200 million, with an option for another $200 million.

Catch up fast: Budderfly provides no-money-down energy retrofits for small and midsize businesses, as well as chains like Dunkin' and the YMCA.

  • The idea is that it can cut a customer's energy bill by 30-35% by installing smart thermostats, more efficient HVAC systems, and other upgrades.
  • Budderfly then bills customers at a 5% discount, making money on the difference while ensuring savings to clients.

Of note: Vantage is majority owned by Northill Capital, which is part of investment group B-Flexion. Nuveen is a subsidiary of financial planning firm TIAA.

State of play: The loan comes roughly six months after Budderfly announced a $500 million investment from Partners Group.

  • Budderfly says it's doubled its annual revenue over the past two years to about $110 million in 2023, per Canary. The Shelton, Connecticut-based company had about 6,000 customers at the end of last year.
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