Gage Zero gains $300M Equity commitment to support Fleet Electrification aims

May 8, 2023
ARC Financial, an energy-focused private equity firm, will provide the funds.

ARC Financial Corp. has convoyed together a group of financial partners to deploy about $300 million in equity to fund commercial fleet electrification startup Gage Zero.

Despite being less than 5% of vehicles on the road, commercial fleets are responsible for nearly 30% of the transport sector’s greenhouse gas emissions, which is where Gage Zero comes in.

The privately held company is based in Austin, Texas and has a combined $10 billion of utility-scale renewable energy and energy storage projects both in the United States and abroad. At the regional level, Gage Zero offers trucking, port, and logistics operators, and national fleets can include site development, EV charging hardware, optimized energy management, and vehicle leasing.

Together, it provides scalable solutions for existing EV fleet operations and a turnkey solution for operators looking to electrify. 

"We are excited to be partnering with ARC Financial to provide affordable and scalable solutions for the electrification of fleets across the country," said Gage Zero co-founder and CEO Zeina El-Azzi. "We're building the massive infrastructure that is needed to economically electrify commercial transportation, increase grid resilience, and lay the foundation for a decarbonized future. Not just because it's time, but because it's necessary – for our children, our environment, our communities and our future."

ARC Financial has been supporting businesses that are committed to addressing sustainability and energy needs since its founding in 1989. Since its private equity arm opened in 1997, it has raised $6 billion and invested capital in nearly 200 companies across the energy sector.  "Our investment in Gage Zero reflects our confidence in the leadership team to execute on the large and exciting opportunity that we see in decarbonizing and electrifying transport," said Brian Boulanger, CEO of ARC. "There is a high degree of complexity to electrification and several other challenges with EV adoption, but with its depth of experience, Gage Zero is ideally suited to provide fleet operators an end-to-end solution in their transition journey."

About the Author

Jennifer Ramsay, Editor at Large, Market Moves Newsletter

Jennifer Ramsay serves as the Editor-At-Large for Endeavor Business Media’s Market Moves newsletter. A Georgia native, she holds a communications degree from the University of North Georgia and has been a journalist since 2019, reporting on a variety of topics.