38 Degrees North Announces Over $230 Million of Corporate Growth Capital Raised, and Welcomes New Equity Investors Climate Adaptive Infrastructure and Kimmeridge

38 Degrees North, a community solar and distributed renewables platform, announced it has closed on a growth equity investment from Climate Adaptive Infrastructure ("CAI"), a leading investment firm focused on energy decarbonization and sustainable water infrastructure, and Kimmeridge Energy Management Company, LLC, an alternative asset manager focused on energy investments, bringing total growth capital raised above $230 million to date. The company also shared that it has completed the acquisition of Kimmeridge-backed community solar developer U.S. Light Energy, including its pipeline of over 250 megawatts ("MW") of projects.

38 Degrees North's capital formation dramatically accelerates the company's ability to meet the increasing demand for rapidly deployed, efficient energy sources across the United States. With U.S. electricity demand expected to rise 25 percent by 2030 and as much as 78 percent by 2050, the U.S. needs to add 80 GW of generation per year between now and 2045, underscoring the need for a diverse set of energy sources, particularly those available at the local level.

Founded in 2015, 38 Degrees North is an established platform focused on development-stage and construction-ready distributed generation and community solar projects. To date, the company has successfully aggregated, financed, constructed, and managed over 400 MW across over 100 projects through partnerships with high-quality institutional investor partners. 38 Degrees North previously closed a growth equity investment from S2G Investments in late 2023.

Community and distributed solar assets are some of the most cost-effective, fastest to market forms of energy generation providing grid stabilization. 38 Degrees North has proven itself as a reliable delivery partner in states where frameworks for this type of energy deployment are strong and growing.

"With rapidly rising electricity prices due to the dramatic increases in power demand from data centers, A.I. and the electrification of transportation, it's clear that we need to accelerate the deployment of local clean energy projects that provide homeowners and small and medium sized business owners with meaningful long-term savings," said 38 Degrees North Founders Ryan Bennett, Jake Carney and Chris Bailey. "CAI and Kimmeridge's support will be key to helping us unlock new opportunities with great development partners, landowners, and customers. We are thrilled to welcome them as strategic capital partners, and our acquisition of U.S. Light will also deepen our footprint in familiar and new markets to which we are excited to bring power and jobs."

"This capital raise is a testament to the 38 Degrees North team's experience, vision, and execution. Their ability to attract experienced institutional capital partners in this challenging market environment is a validation of the company's differentiated approach to distributed renewable energy asset acquisition and development. We're incredibly proud of the team's progress to date and look forward to this next phase of growth alongside CAI and Kimmeridge," added Priyanka Duvvuru, Principal at S2G Investments and 38 Degrees North Board Member.

"At CAI, we are relentlessly focused on the macro trends driving the future of global infrastructure, and our investment in 38 Degrees North fits squarely into this mandate. As power demands surge and the grid becomes less stable, distributed generation plays an ever-greater role," said Bill Green, Managing Partner at CAI. "We've watched this team execute over the years and are thrilled to join them at this important time. We're excited to support one of the most capable operating teams in distributed renewables as they expand their footprint and bring more clean energy projects to communities across the country."

"We're proud to support 38 Degrees North in this next chapter of growth. Our investment is grounded in a shared conviction that distributed-scale renewables will be a defining force in the next generation of energy infrastructure. In a market shaped by regulatory complexity and geographic fragmentation, 38 Degrees North has built a platform that can navigate and capitalize on that landscape with clarity and control," said Henry Makansi, Managing Partner at Kimmeridge.

Norton Rose Fulbright served as legal counsel to 38 Degrees North on the corporate raise as well as the acquisition of U.S. Light Energy, while Kirkland & Ellis LLP represented CAI and S2G, respectively, and Foley & Lardner LLP advised Kimmeridge.

38 Degrees North | www.38degreesn.com