GSSG Solar Partners, LP

GSSG Solar Partners, L.P. is a Delaware limited partnership formed for the purpose of making direct solar investments in a diverse pool of solar projects and assets.

The Fund intends to participate in and catalyze growth in the emergent renewable power infrastructure space. Based on precipitous declines in solar panel pricing and rising demand for electric power, the solar industry has evolved into a global marketplace attracting developers and installations worldwide.

Our strategy allows us to engage developers when they are most vulnerable/aligned and help identify opportunities further upstream.

GSSG Solar Partners, LP is actively seeking and making solar investments in Japan, Mexico, and the US.

Financial description

GSSG Solar Partners, LP utilizes portfolio construction to capture a blended return that is above market with a de-risked floor.
The Cash Equity Strategy generates a ~12% IRR, 3.0X ROI return profile (largely driven by the long-dated cashflows).
The Acquisition Strategy targets a ~100%+ IRR, 1.6X ROI return profile.
The Options Strategy targets a 4.0X+ ROI.
By investing at least 1/3 of the fund in the Cash Equity Strategy—proven and producing solar projects with only operational risks—a 0% success in both the Option and Acquisition Strategies results in 0 return, 0 principal lost, and 0 carries paid for the fund. This ensures financial alignment with GSSG and covers the downside position while enabling access to the “exciting” upside of the Acquisitions and Options Strategies. Further, both the Acquisitions and Options Strategies allow GSSG to be involved earlier in the project life-cycle, thus avoiding margin compression on the cash equity component through structuring and access to quality projects.
Solar infrastructure investment generates long-term, predictable yield by relying on low-risk, proven technology installed by reputable firms. We seek long-dated contracted revenues from creditworthy off-takers, and solar power represents zero fuel cost uncertainty (unlike coal and natural gas). GSSG Solar Partners, LP is uncorrelated to broader public capital markets and generates attractive risk-adjusted yields in low interest rate environments.