Sunday, June 16, 2024

ECP surpasses $4bn fundraising target for energy infrastructure fund by 10%

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Energy Capital Partners (ECP) has exceeded a $4bn (€3.7bn) fundraising target for its fifth infrastructure fund by 10% and also raised an additional $2.3bn in co-investment capital.

ECP said the ECP V’s commitments were secured from a broad mix of existing and new investors across the globe, including public and private pensions, insurance companies, asset managers and family offices.

As previously reported, the Minnesota State Board of Investment was considering a $200m commitment to ECP V, a fund that acquires and develops primarily controlling interests in assets, contracts and businesses in power generation, renewables, energy storage, environmental and sustainability efficiency.

ECP said the fund had so far made eight investments in two years worth around $2.2bn of the total capital committed or $4.4bn when including co-investment.

The investments include the take-private acquisitions of Atlantica Sustainable Infrastructure and UK-based waste management business Biffa, and investment in biofuels platform Harvestone.

Doug Kimmelman, founder and senior partner of ECP, said: “The electricity sector is transforming into a major growth area for both the US and global economy, with forecasts projecting that electricity demand will skyrocket by 1.5-2.0x over the next 15 years from current levels.

“This growth is being driven by converging demand from factors such as data centres, electric vehicles, onshoring of manufacturing and electrification.”

Emily Zovko, the head of investor services and managing director at ECP, said: “The successful final close of ECP V represents a milestone for our firm and demonstrates the strong support and confidence from our LPs around the world.  

“ECP’s focused efforts to build, execute, and ultimately drive value from a robust pipeline of investments tied to electrification, decarbonisation, reliability and sustainability remain at the centre of ECP’s success as it has for the last 19 years.”

To read the latest IPE Real Assets magazine click here

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