Listed private equity firm and global asset manager American Capital is expanding into energy infrastructure with the launch of the American Capital Infrastructure (ACI) fund.
The new venture will target global investments in power generation facilities, power distribution and transmission networks, energy transportation assets and fuel production opportunities, the company said in a statement.
American Capital has committed $200 million to support ACI, which will add international investments to the asset manager’s $606 million portfolio of US mid-market oil field services and related companies.
ACI will be led by chief executive Paul Hanrahan, who used to head power company AES Corporation till 2011. He was responsible for establishing operations in Europe, Asia, Latin America and the United States.
Hanrahan said he saw significant investment opportunities for ACI as “worldwide energy consumption is expected to increase substantially by 2030 and significant investment in energy infrastructure is required to satisfy this demand. This demand is driven by emerging markets experiencing robust economic growth, a rapid expansion of middle class populations and limited existing energy infrastructure.”
Rich Santoroski will join as ACI’s managing director, after serving as executive vice president at AES. Another AES veteran, Rajeev Garside, will serve as ACI vice president after a stint as operating partner at private equity firm Potomac Energy Fund.