Highland Electric Fleets, a Beverly, Massachusetts-based provider of Electrification as a Service (EaaS) for school buses and other fleets, secured a $75 million preferred equity commitment from Galvanize and its affiliates. This closes in stages aligned with deployment timelines and brings total preferred equity commitments to $150 million, following a prior commitment from Aiga Capital Partners.
Highland’s $75 million funding marks the first investment from Galvanize’s Credit and Capital Solutions strategy, which targets $1.8 billion in deployments over three years for companies that have outgrown traditional venture capital but are not yet ready for conventional bank financing.
What is Highland Electric Fleets?
Founded in 2019, Highland positions itself as North America’s leading EaaS provider. It delivers turnkey solutions for transitioning diesel fleets to electric, primarily focusing on school districts, municipalities, and fleet operators. Services include:
- Planning and design of depots, charging infrastructure, and parking.
- Procurement of vehicles and chargers.
- Securing federal, state, and local incentives and financing.
- Installation, operations, maintenance, and optimization under long term service agreements.
- Performance guarantees, such as reimbursing downtime if fleets are not charged and route ready.
- Vehicle to grid (V2G) capabilities, turning buses into mobile energy assets.
Highland’s model aligns operating costs with or below diesel equivalents while generating stable, recurring revenue through contracts. It has secured approximately $525 million in grants and incentives for partners, operates or has under contract over 1,000 electric school buses, and claims status as the #1 owner/operator of EV school buses in the U.S. It also pioneered a commercial V2G program.
Key differentiators include a performance guarantee, high charger uptime (reported at 97% across projects), reduced maintenance (up to 60% less time), and fewer moving parts compared to diesel engines. Deployments span multiple states with proven results in varied climates, such as Maryland (236 buses, millions of miles driven) and others.
High profile wins include selection as the Official Electric School Bus Provider for the LA28 Olympic and Paralympic Games, targeting 500 buses.
The $75 million will accelerate deployment of electric school buses and charging infrastructure, expand operations in key markets, broaden capabilities into additional municipal fleets and energy applications (including battery storage and grid services), and support potential M&A amid industry consolidation. CEO Duncan McIntyre highlighted plans to bridge to traditional financing while scaling.
This capital strengthens Highland’s balance sheet for larger scale rollouts in 2026 and beyond, capitalizing on predictable routes, short ROI for school buses, and rising interest due to diesel price volatility (e.g., from geopolitical events).
School bus electrification benefits from strong tailwinds: environmental and health gains (reduced emissions benefiting children), policy support via incentives, and operational advantages (quiet, reliable, lower long term costs). Fleets suit EVs due to depot based charging and fixed routes. V2G adds revenue potential by supporting the grid amid rising electricity demand from AI and other sectors.
Challenges in the sector include incentive uncertainties, tariffs, infrastructure needs, and past cooling in commercial EV adoption, but recent diesel price spikes have renewed interest. Highland’s contracted revenue model and track record position it well.
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Galvanize’s involvement via its credit strategy reflects tailored, flexible capital with private equity style due diligence, focused on contracted cash flows and real assets. This complements earlier equity from Aiga Capital Partners (up to $150 million in late 2025) and other backers like Vision Ridge Partners and Fontinalis Partners.
Total funding raised exceeds hundreds of millions (including debt and other rounds), supporting growth as a generating revenue company. The preferred equity structure provides patient capital suited to infrastructure heavy deployments.
CEO Duncan McIntyre leads a team including executives with commercial, financial, and operational expertise. The board features clean energy and infrastructure veterans. Highland has earned recognition such as TIME100 Most Influential Companies 2024 and Clean Technology Transportation Company of the Year.
This funding reinforces Highland’s leadership in fleet electrification by enabling national expansion, technology advancements (e.g., energy storage), and deeper market penetration. Success hinges on execution against deployment timelines, securing ongoing incentives, maintaining performance guarantees, and navigating policy/regulatory shifts. The EaaS model’s focus on de-risking the transition for public sector customers offers a scalable path in a high impact sector with environmental, health, and grid stability benefits.
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