Smarter, Better, Faster - neifund.org · SMARTER BETTER FASTER Leveraging years of...
Transcript of Smarter, Better, Faster - neifund.org · SMARTER BETTER FASTER Leveraging years of...
NATIONAL ENERGY IMPROVEMENT FUND
Smarter, Better, FasterAccess to Financing & Funding
for Energy Improvements
INVESTOR OVERVIEW MARCH 2019
NEIFUND.ORG
NEIF is a for-profit, public benefit, licensed financial institution. Certified “B-Corp” status pending.
NEIF’s mission is to promote energy savings by increasing the affordability of energy efficiency improvements for consumers and businesses.
NEIF is a national leader in energy improvement financing.
The NEIF team has been responsible for over $700 Million in energy financing.
Who is NEIF?neifund.org
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NATIONAL ENERGY IMPROVEMENT FUND, LLCA Pennsylvania Benefit LLC
Offering of 100 Shares Series B Preferred Term Units
7.00% Paid Quarterly
5 Years Interest only, followed by 5-year principal term out redemption, plus 2.00% pro-rata participation upon change of control*
Offering Price: Thirty Thousand Dollars ($30,000.00) per shareIn addition to the 7.00 % Preferred Dividend paid quarterly, each share will
receive its full remaining principal redemption plus .02% (2%/divided by 100 shares) of the net purchase price at change of control. * For example, if the net purchase price at change of control was
$10,000,000 each share would receive a pro-rate participation of $2,000 in addition to the full remaining principal redemption.
This Offering is Limited only to: (i) Accredited Investors; and (ii) a Restricted Number of Investors Who Have Such Knowledge and Experience in Financial Business Matters That They Are Capable of Evaluating the Merits and Risks of a
Prospective Investment. Please see the Private Offering Informational Statement and related documents.
Investment Offering
NEIFUND.ORG
SMARTER BETTER FASTER
Leveraging years of contractor-driven energy finance know-how and industry relationships to offer the best possible experience for contractors, customers, sponsors and partners
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The NEIF Effect on Financing & Funding for Energy Improvements
Improved access to lower cost capital to provide better rates to customers and lower fees to contractors
Fast, simple, fully compliant automated lending platforms, backed by a team of Energy Lending Specialists to achieve rapid decisions and funding
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What is NEIF’s Business Model?
Consumer lending fees from origination & multi-year
loan and program servicing contracts
NEIF’s business model generates current fee revenue and long-term sustained recurring revenues derived from a set of business lines that are tightly unified to service energy
efficiency financing. 5
The NEIF business model relies on revenue from energy efficiency financing in four areas.
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Commercial finance origination, servicing &
utility management contracts
Discounted advance payment of utility
rebates to contractors
Specialty finance services for energy efficiency derived from loan
placement and capital sourcing
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NEIF’s Team is Led by Efficiency Finance Pioneers
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PETER KRAJSACO-CHAIR
MATTHEW BROWNCO-CHAIR
Previously CEO of AFC First, a groundbreaking energy efficiency lender founded in 1947 with over 6,000 participating contractors, creators of Pennsylvania’s Keystone HELP, the national EnergyLoan program, and many other market-based and state- and utility-backed financing programs.
Founder and Principal of Harcourt Brown & Carey and HBC Energy Capital, the nation’s top designer of energy finance programs for states and utilities including California, Michigan and many others.
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A Senior Management with Years of Experience
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LAURA NELSONCHIEF OPERATING OFFICER
Previously CFO of AFC First
Instrumental in national Warehouse for Energy Efficiency Lending
VP at Renew Financial and Deutsche Bank
TESSA SHINVP LENDING AND PROGRAMS
Former Director of Lending and Programs at AFC First and Renew Financial
TERI STOFFEYVP ACCOUNTING AND SERVICING
Former Accounting Manager at Renew Financial
Former Director of Process and Reporting at AFC First
JEREMY EPSTEINVP COMMERCIAL FINANCE
Senior associate, HBC
Residential and commercial finance program expert
HEATHER BRAITHWAITEVP STRATEGIC DEVELOPMENT & REBATE PROGRAMS
Senior associate, HBC
Government and utility finance program expert
RANDY BAKSENIOR DIRECTOR, BUSINESS DEVELOPMENT
National sales, channel and contractor management professional
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The NEIF Team Has Been an Innovator in the Nation’s Most Successful Energy Financing Programs
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• Pennsylvania Treasury –Keystone HELP
• West Penn Power Sustainable Fund
• Sustainable Energy Fund
• Building Performance Institute (BPI)
• Efficiency Maine
• Connecticut Green Bank
• Eversource
• United Illuminating
• Michigan Saves
• Energy Kinetics
• ComEd
• Ameren
• Progress Energy
• Atas International
• Knauf Insulation
• Xcel Energy
• AEP Ohio
• P&N Distribution (Rheem)
• PECO
• WHEEL
• FannieMae National EnergyLoan
• HUD PowerSaver
• California Treasurer & Utilities
• Kentucky Home Performance
• Maryland Clean Energy Fund
• Delaware Sustainable Energy Utility
• Illinois Energy Association
NEIFUND.ORG
Formally established in July 2017 as benefit LLC with legacy roots from AFC First (founded 1947, merged with Renew Financial 2015) and HBC Energy Capital (Harcourt Brown & Carey, founded 2005).
NEIF Moved Rapidly from Inception to Launch
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CREATION INITIAL CAPITAL
FUNDING RELATIONSHIPS
LAUNCH
Derived initial operating investment capital from management, qualified individual investors & trusts, as well as multiple foundations and energy funds.
Established or continued primary relationships with multiple banks, energy funds and other finance entities to supply loan capital.
Launched operations in July, 2018 with a staff in Allentown, PA and Denver, CO and quickly began to derive revenue from its business lines and focus.
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NEIF Accomplishments Since Founding
NEIF assumed administration of Efficiency Maine financing (unsecured and PACE originations) and $13 million servicing book
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RESIDENTIAL ENERGY LENDING
$13M $4M $25MNEIF assumed servicing on $4 million residual Pennsylvania Treasury Keystone HELP loan portfolio
Received bank forward purchase commitment of $25 million for NEIF Home Energy Loan nonsubsidized program in Q1 2019
Q2 2019 11Expected re-launch of Keystone HELP with Pennsylvania Treasury in Q2 2019, potential NY Green Bank program
Now authorized to lend or pending authorization in 11 additional states
375Over 375 top-tier energy contractors are now part of the NEIF- Approved contractor network
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COMMERCIAL ENERGY FINANCENEIF Accomplishments Since Founding
HBC Energy Capital became NEIF Commercial Finance, providing commercial customers with efficiency finance nationwide
NEIF has partner/vendor relationships with utilities and contractors nationwide
Developed and launched an online portal to enable instant finance quotes and full contractor/customer/ utility partner support from finance estimate until funding
Executed efficiency finance deals ranging from a few thousand dollars to $2.5 million
Launched Eversource (CT, NH, MA) Commercial 0% Finance Program in March, 2019
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Facilitated takeout of $11 million WHEEL facility (PA Treasury, NY
Green Bank) by Amalgamated Bank
Placed $42 million Eversource commercial on-bill loan portfolio with Amalgamated Bank and the CT
Green Bank
Sought and placed tax equity funds for solar/storage facilities
($14M)
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NEIF Accomplishments Since Founding
Launched this rebate advance program in December 2018 to help
with contractors’ cash flow as RB Funding LLC, in partnership with
Energy One Finance
NEIF pays contractors for their submitted/confirmed rebates
today (at a discount) and awaits utility’s payment of the rebate
Since inception, has advanced rebates of close to $1,000,000
Now expanding nationwide
SPECIALTY FINANCE
REBATE ADVANCE FUNDING & SPECIALTY FINANCE
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THE NEIF PRODUCTS
Smarter, Better, FasterAn Overview
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RESIDENTIAL ENERGY IMPROVEMENT FINANCING
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Leveraging years of contractor-driven lending know-how, NEIF has partnered with GoldPoint Systems to provide the most seamless and compliant user
lending experience for contractors, consumers and sponsors.
OUR SYSTEM FEATURES:
Instant decisioning
Contractor portal, sales tools, on-call
sales training
Paperless process &
rapid funding
Full lending compliance
Complete servicing
system and customer
service team
Full contractor
and sponsor reporting
State-of-the-art contractor search & lead
generation features
Distributor, Manufacturer, Utility, Trade Association
partnerships
* * * * * * * *
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ENHANCED TERMS AVAILABLE WITH NEIF PROGRAM PARTNERS: UTILITIES, GREEN BANKS, STATE GOVERNMENT & OTHERS
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Amount & Eligible Improvements
Terms & Rates Timing
$2,500 to $25,000• Heating & Cooling• Windows, Doors, Siding & Roofing• Air Sealing & Insulation• Electrical & Plumbing• Home Performance with ENERGY STAR• Geothermal, Solar & other energy projects
Instant Decisioning• “Kitchen Table” contractor
portal and sales tools
• Paperless process and rapid funding upon satisfactory completion
Up to 10 Years• Unsecured, fixed rate, point
of purchase monthly payment plans
• Buydown and sponsorship programs available
RESIDENTIAL ENERGY IMPROVEMENT FINANCING
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Point-of-purchase phone and tablet contractor sales & application tools, contractor and sponsor tracking portals, online consumer payments, and more
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RESIDENTIAL ENERGY IMPROVEMENT FINANCING
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RECURRING REVENUE ONE-TIME FEES
A per-loan, recurring revenue, servicing and program
management fee collected over the length of the loan,
typically up to 10 years
A per-loan and one-time loan
contractor or sponsor-paid funding fee
BUSINESS MODEL
RESIDENTIAL ENERGY IMPROVEMENT FINANCING
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NEIF matches multiple lenders’ finance offers to each project through a web-based portal
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NEIF uses a multi-channel funding structure to power its commercial energy finance
LENDER MATCHING IMMEDIATE OFFER ONLINE PORTAL CUSTOM FEATURES
Projects receive the best financing offer for their project —within seconds of project input—based on terms, rates and other conditions
NEIF’s portal guides contractors through the remainder of the process until they are funded
NEIF offers many custom features to contractors, utilities and other partners• Easy rate buydowns
• Accommodations for loss reserves and other credit enhancements
• Custom branding/co-branding
• In-person, web-based training and training materials
COMMERCIAL ENERGY IMPROVEMENT FINANCING
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Up to $100,000Just credit and improvement
type qualification (case by case)
Above $100,000Limited income documentation
(financials/tax returns)
Amount & Eligible Improvements
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COMMERCIAL ENERGY IMPROVEMENT FINANCING
Income Documentation Terms & Rates Timing
$10,000 to $250,000 Other amounts, case by case,
$10 million or more
• Lighting
• Building Controls
• HVAC
• Refrigeration
• Renewables (case by case)
• Building Envelope(insulation, windows etc.) as part of a core project
Instant Online Estimate & pre-qualification
Formal credit approvaltypically in less than
2 business days
Funding typically within 2 days from completion (or
available progress payments)
Terms1 to 7 Years
Longer terms available for larger projects and for non-
profit and municipal
RatesLow fixed rates and flexible terms designed for positive
cash flow from 0.00% (with buydown)
Finance Estimate for Sams Clams, LLC
Project ID: 88677997
* This finance estimate uses projected energy and maintenance savings data provided by your contractor. Many factors can affect the energy savings estimates as well as the realization of these estimated savings once the project is installed,
HBC Energy Capital encourages the customer to review these numbers with their contractor.
HBC Quote #9125, created on: 1/11/2019
Project Summary
Eversource has partnered with HBC Energy Capital to provide Massachusetts businesses with preferred rates for energy efficiency
upgrades. This Project Overview details the payments and savings calculated for your specific project. Once you are ready to proceed,
inform your contractor and your project will be submitted for financing approval.
Please note: Finance estimate figures are subject to credit review; interest rates and final payment amounts may vary.
Questions? Call HBC Energy Capital at (720) 724-7673 to discuss your financing options today.
Project Cost $75,000.00
Utility Incentive $8,734.94
Net Financed $66,265.06
*Rate 0.00 %
Financing Estimates
Annual Savings $20,500.00 Energy and Maintenance Cost Savings
Ten Year Savings $205,000.00 Energy and Maintenance Cost Savings
6 Months Cost of Delay $10,250.00 Lost Energy and Maintenance Cost Savings From Waiting 6 Months to Install Project
Project Saving Estimates
Project Financing Estimates *
Term Monthly Savings Monthly Payment Net Monthly Cash-Flow
5 Years $1,708.33 $1,104.42 $603.91
Next Steps
Step 1 Review this offer and either click the "I am Ready to Apply" button in your email, or notify your contractor that you want to move forward with this offer.
Step 2 You will receive an email with a link to a secure online application within one business day. Fill it out for financing approval.
Step 3 Receive notification of financing approval, sign closing docs, and begin equipment installation
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Our online portal, backed by top-tier energy efficiency lending specialists, simplifies the financing process
COMMERCIAL ENERGY IMPROVEMENT FINANCING
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CLOSING FEE
A per-loan origination fee collected from NEIF’s
partner lenders at the time of loan closing or project
funding
MONTHLY FEE
For most programs, a multi-year utility or
other program sponsor fee collected
monthly
RECURRING REVENUE
A monthly, recurring servicing fee collecting over the life of the loan
BUSINESS MODEL
COMMERCIAL ENERGY IMPROVEMENT FINANCING
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PROBLEM SOLUTION
pays within
1 WEEK
Rebate payments to contractors can take a long time to receive from rebating agencies—as long as
4 MONTHS
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ADVANCE FUNDING OF UTILITY AND PROGRAM REBATES
NEIFUND.ORG
Once You Become an Approved NEIF Contractor, It’s as Easy as 1 – 2 – 3
Gather Project Information
Upload Project Info by Friday at 12:00 pm EST
Get the rebate, less our nominal funding fee, in
your account via ACH within 2 business days
1 2 3
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ADVANCE FUNDING OF UTILITY AND PROGRAM REBATES
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PER-REBATE FEE INVESTMENT RETURNS
A per-rebate discount fee that varies depending on the size of the rebate, the timing
or payment and complexity of the rebate processing
A share of the return on investment in the fund
that supports Rebate Bridge
BUSINESS MODEL
ADVANCE FUNDING OF UTILITY AND PROGRAM REBATES
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Current & Planned Staffing
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NEIF
Laura Nelson
Chief Operating Officer
VP, Business Development
Sr. DirectorBusiness Dev.
Randy Bak
Business Development
Director
VP, Strategic Dev./Rebate Bridge
Heather Braithwaite
VP, Accounting & Servicing
Teri Stoffey
Loan Servicing Manager
Loan Servicing Specialist
Alisha Thompson
Loan Servicing Specialist
Sue McCauley
Accounting Manager
VP, Lending & Programs
Tessa Shin
Sr. Energy Lending Specialist
Shannon Newton
Energy Lending Specialist
Mary Kazmer
Energy Lending Specialist
VP, Commercial Finance
Jeremy Epstein
Commercial Lending Specialist
Commercial Lending Specialist
Business Manager
Joanne Hartman
Contractor Specialist
Brittany Heller
Contractor Specialist
Brandy Miller
Peter Krajsa
Co-Chair
Marketing Manager
Matthew Brown
Co-Chair
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$17,459,287
$39,540,688
$79,583,090
$121,341,241
$161,943,328
$199,605,300
2018 Actual 2019 2020 2021 2022 2023
EOY Managed Loan PortfolioActual 2018 & Projected
NEIFUND.ORG
PETER KRAJSACo-Chair and [email protected]
MATTHEW BROWNCo-Chair and [email protected]
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Contact NEIFneifund.org
LAURA NELSONChief Operating [email protected]
TESSA SHINVP, Lending & [email protected]
TERI STOFFEYVP, Accounting & [email protected]
JEREMY EPSTEINVP, Commercial [email protected]
HEATHER BRAITHWAITEVP, Strategic Development & Rebate [email protected]
RANDY BAKSenior Director, Business [email protected]
National Energy Improvement Fund, LLCAllentown PA • Denver, CO(484) 838-5460