The Finite Solar Finance Fund (SOLRX) is designed as a highly accessible way for anyone to directly participate in financing the clean energy transition.
The Fund aims to generate long-term risk-adjusted returns for investors, with a secondary focus on attractive income. The Fund employs two distinct but complementary strategies in pursuit of these objectives.
Private Solar Asset Investments
These are the bread and butter of the Fund, and the vehicles that allow you to invest directly into solar development.
Typically these investments show up as loans used to finance residential and commercial solar projects in the United States.
Instead of lending on a per-project basis, Finite partners with solar originators, which are firms that do initial underwriting on borrowers and provide the financing that pays for solar installations. This allows the Fund to evaluate pools of existing loans and acquire them efficiently, bringing our investors rights to the interest and principal payments on those loans, and providing the solar originators with working capital to go finance more solar.
Solar loans have historically performed well as an asset class. The loan payments can offer the end users significant savings off their standard bill, even with attractive interest rates relative to many popular fixed income investment products.
Public Solar Security Investments
To round out the portfolio, the Fund will typically allocate a smaller share of capital to public securities like bonds and equities of U.S. solar industry participants.
The bonds can provide some income while the Fund works with solar originators to structure another private asset acquisition, and the solar equities offer the potential for capital appreciation when share prices of American solar companies grow.
Both types of securities are more liquid than private markets, which allows the Fund to sell them to support share repurchase requests, or even free up “dry powder” to invest opportunistically.
By blending private and public assets, Finite intends to expand access to the historically stable performance and attractive income produced by solar financing, with just enough liquidity to remain agile when opportunities present themselves. You can learn more about the Fund’s investment strategy here.