An energy trading and wholesale startup that’s based in south Florida and Denver attracted $130 million in a round led by Colorado investors on Monday.
Guzman Energy Group secured $130 million in equity and mezzanine debt financing to expand its operations, the main hub for which is in downtown Denver. The company uses wholesale energy purchasing and hedging to help its customers — primarily rural electric cooperatives and municipal power utilities — lower rates and achieve price stability for renewable sources of energy, Guzman Energy says.
Boulder-based Vision Ridge Partners and Zoma Capital financed the round. Zoma Capital partners is a family office of Ben and Lucy Ana Walton, members of the Walmart founder’s family.
Members of both funds will join Guzman’s board of directors.
Guzman is pleased to have them as partners in expanding the business, Leo Guzman, co-founder, chairman and CEO of Guzman Energy, said in a statement.
“Not only do their respective investments in the company represent a tremendous validation of our leadership position to bring about change, but their strategic insights, deep relationships and significant resources will play an important role in Guzman Energy reaching its full potential,” he said.
Zoma Capital was attracted to the investment because it fit the fund’s emphasis backing companies finding market-based, sustainable approaches to energy, water and community development, said Melissa Cheong, chief investment officer of Zoma Capital, in a statement.
Guzman Energy helped the Kit Carson Electric Cooperative, a utility for three counties of northern New Mexico, buy out a power-supply agreement and use a solar project to supply the 30,000-member co-operative’s summer power needs, saving between $50 million and $70 million over 10 years.
“Guzman Energy’s efforts to realign the energy economy — in unique bilateral markets in New Mexico, Colorado and beyond — aligns with our dedication to investing in a more efficient, responsive and modernized electric grid,” Cheong said.
View original post here.