38 Degrees North Raises Over $230 Million Amid Surging U.S. Energy Demand
Sausalito, CA – July 2025 — 38 Degrees North, a leading platform in community solar and distributed renewable energy, has secured over $230 million in growth equity funding from Climate Adaptive Infrastructure (CAI) and Kimmeridge Energy Management Company. The company also completed the acquisition of U.S. Light Energy, adding more than 250 megawatts (MW) of solar projects to its development pipeline.
Since its founding in 2015, 38 Degrees North has developed, financed, and managed over 400 MW across more than 100 community and distributed solar projects. The new capital and strategic acquisition will help the company address the rising demand for local, efficient energy solutions across the United States.
According to national projections, U.S. electricity demand is expected to increase by 25% by 2030 and 78% by 2050, requiring an estimated 80 gigawatts (GW) of new generation capacity annually through 2045.
Strategic Capital and Acquisition
- New Investment Partners: CAI and Kimmeridge bring strong institutional experience and a shared commitment to sustainable infrastructure growth. They join existing investor S2G Investments.
- U.S. Light Energy Acquisition: Adds 250+ MW of solar projects to 38 Degrees North’s pipeline, particularly in New York and Pennsylvania.
- Legal Advisors: Norton Rose Fulbright represented 38 Degrees North. Kirkland & Ellis advised CAI and S2G. Foley & Lardner supported Kimmeridge.
Key Market Trends
- Accelerating Demand: Electric vehicles, AI-powered infrastructure, and heat electrification are pushing up electricity usage and prices in major U.S. grids.
- Faster Deployment Cycles: Community solar can be deployed in 12–24 months, while large utility-scale projects often face 3–5 year timelines.
- Consolidation Opportunities: Smaller solar developers are facing capital access challenges, making them ideal acquisition targets for firms like 38 Degrees North.
Execution and Market Advantage
With the addition of U.S. Light Energy, 38 Degrees North now manages over 650 MW in solar capacity across distributed and community projects. Led by founders Ryan Bennett, Jake Carney, and Chris Bailey, the team is known for its ability to navigate regulatory complexity and execute efficiently across markets.
This focus on smaller, nimble projects gives the company a competitive edge amid transmission delays, interconnection backlogs, and rising grid instability.
Leadership Statements
“With rapidly rising electricity prices and an urgent need for grid resilience, accelerating the deployment of distributed clean energy is critical. The support from CAI and Kimmeridge empowers us to take our platform to the next level.”
“As power demand surges and the need for grid stability grows, distributed generation has never been more important. 38 Degrees North’s operational experience and pipeline position them as leaders in this transition.”
— Bill Green, Founder, Climate Adaptive Infrastructure
What’s Next
- Rapid development of the newly acquired 250 MW solar pipeline.
- Further expansion through targeted acquisitions.
- Delivering scalable, investor-grade clean energy solutions across the U.S.
Private Equity and Institutional Capital Fueling the U.S. Oil & Gas Sector: A Shifting Landscape
The U.S. oil and gas sector, a cornerstone of the global energy supply chain, is undergoing a transformation driven by the dynamic interplay of private equity and institutional capital. While traditional energy sources face increasing scrutiny due to environmental mandates, the ongoing demand for reliable energy—combined with geopolitical complexities and evolving policy frameworks—continues to attract significant investment.
This article explores who is funding this sector, the trends driving deal flow, changes in investor risk appetite, the influence of ESG considerations, and the evolving fund structures that support this capital deployment.
Who's Funding the Future?
Private equity (PE) firms remain key players in financing the U.S. oil and gas industry. From large, established names like EnCap Investments and Kayne Anderson Capital Advisors to more specialized niche firms, these investors are deploying substantial "dry powder" across the sector. Their deep expertise in identifying undervalued assets, improving operations, and executing strategic exits makes them indispensable to the industry's financial ecosystem.
Institutional investors—including pension funds, endowments, sovereign wealth funds, and family offices—often gain exposure to the sector indirectly through PE funds. However, an increasing number are pursuing direct investments to gain more control, reduce fees, and enhance returns. Additionally, entities like the U.S. Department of Energy continue to support innovation and energy security through targeted funding, particularly for advanced technologies and infrastructure.
Deal Flow: A Resurgence Driven by Consolidation and Strategic Opportunities
- Consolidation: Large, integrated energy firms are engaging in mega-deals to expand reserves and realize economies of scale. PE plays a critical role by consolidating and optimizing smaller assets.
- Upstream Investment: Regions like the Permian Basin, Eagle Ford, and Powder River are drawing new capital for exploration and production.
- Midstream Growth: Infrastructure investments remain essential for transportation, storage, and processing—areas where PE is highly active.
- Distressed Opportunities: PE firms are capitalizing on downturns to acquire undervalued assets and unlock value through operational improvements.
Risk Appetite: Evolving Strategies in a Changing Environment
- Data-Driven, Diversified Strategies: Focusing on low-risk geographies and asset diversification to manage volatility.
- Operational Excellence as a Hedge: Improving ESG performance and cash flow stability through efficiency.
- Energy Security Re-emergence: Growing interest in domestic production amid geopolitical tensions.
- Policy Tailwinds: Political shifts may influence regulatory flexibility and investment enthusiasm.
Green Mandates: Integration Over Abandonment
- Green Financing Instruments: Tools like green bonds and sustainability-linked loans are gaining traction.
- Decarbonization as Value Creation: Tangible low-carbon strategies are attracting long-term capital.
- ESG in Due Diligence: ESG metrics are now core to investment screening and evaluation.
- Portfolio Diversification: Investors are balancing oil & gas with renewables or clean tech allocations.
Fund Structures: Tailored for Energy Investment
- Limited Partnership Model: General Partners manage capital for Limited Partners over 10–12 years.
- Compensation Frameworks: Fees and carried interest align GP-LP interests.
- Specialized Mandates: Targeting midstream, unconventional plays, and services for niche returns.
- Co-Investment Opportunities: Institutions seek SMAs and co-investments for cost control and direct access.
Conclusion: Navigating a Complex, Opportunity-Rich Landscape
Despite regulatory pressures and ESG evolution, private equity and institutional investors remain committed to the U.S. oil and gas sector. With continued demand for energy, a push for domestic security, and evolving fund strategies, deal activity is expected to stay strong well into the coming years.
Investors are balancing financial returns with sustainability goals—driving a new era of strategic, ESG-aligned growth in the energy market.
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Conclusion
With more than $230 million in equity funding and a significantly expanded project pipeline, 38 Degrees North is well-positioned to meet the rising demand for distributed clean energy across the United States. The company's focus on speed, flexibility, and community-based solar positions it as a leader in delivering both environmental and economic value at scale.