Sunday, June 16, 2024

Energy Capital Partners Raises $6.7 Billion for Energy Transition Infrastructure Buyout Fund – ESG Today

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Energy transition and decarbonization-focused infrastructure investor Energy Capital Partners (ECP), announced that it has raised $6.7 billion at the final closing of its fifth flagship equity strategy, ECP V, including capital commitments of $4.4 billion, and an additional $2.3 billion of co-investment capital. The firm added that ECP V’s capital commitments exceeded its initial $4 billion target.

Founded in 2005, ECP invests across energy transition, electrification and decarbonization infrastructure assets. The firm’s flagship private equity funds focus on making value-add, predominantly control investments in the power generation, renewables, storage, environmental infrastructure, and sustainability, efficiency & reliability sectors.

According to ECP the new will fund continue the firm’s investment strategy, aimed at transforming attractive and growing companies in power generation, renewable and storage assets and critical sustainability and decarbonization infrastructure.

Doug Kimmelman, Founder and Senior Partner of ECP said:

“The electricity sector is transforming into a major growth area for both the U.S. 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 centers, electric vehicles, onshoring of manufacturing and electrification. At this exciting time for our core sectors, we are pleased to have the abundant capital and decades-long specialized experience needed to capitalize on opportunities and create value for our firm and investors.”

The final closing of ECP V follows the announcement by ECP of a take-private investment of diversified renewable and power platform Atlantica Sustainable Infrastructure at a $2.6 billion equity value, marking the eighth investment in two years totaling approximately $2.2 billion of capital committed.

Emily Zovko, 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, decarbonization, reliability and sustainability remain at the center of ECP’s success as it has for the last 19 years.”

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