The solar energy market has grown more than 1,000 percent in the past four years. The Solar Energy Industries Association reports an installed capacity of more than 22.7 gigawatts, enough to power more than 4.6 million American homes.
Wunder offers a way for accredited investors to tap into this growth. The Wunder Income Fund, launched earlier this year, has already financed multiple commercial-scale projects across the country with total project finance originations of $25 million. The Income Fund provides asset-backed loans to existing solar projects. The Income Fund’s target returns of six percent are far higher than green bonds or other green investment opportunities. Strong investor interest to date has seen nearly 20 percent of new investors making a second investment within 90 days.
The new Wunder Bridge Fund is designed to suit investors who are looking for a higher rate of return and a shorter term. This new fund provides short-term capital to top-tier commercial solar installers around the country for new project development activities, such as system design and hardware procurement. The fund returns a projected 11% annually for 2 years to investors, with interest being paid monthly and principal repayment at maturity.
“With the launch of the Wunder Bridge Fund, investors can now tailor their investments to their individual risk appetite and capital requirements,” said Wunder CEO Bryan Birsic. “We’re dedicated to offering a group of products that allow investors to find ways to build their portfolios while building our post-carbon future.”
Wunder uses a software-enabled process to find and negotiate deals on new projects. This simplifies and reduces the cost of implementation, allowing Wunder to locate high-quality projects and finance them more efficiently than traditional banks. This allows Wunder to finance projects that benefit the economy and the environment when others cannot.
The minimum investment for accredited investors is $1,000 over the two-year investment term. Loans in the Wunder Bridge Fund are secured by the solar projects that they finance and the power that those projects generate in the future. Wunder plans to launch additional strategies as the firm continues to expand.