Conduit in 3.3x energy exit

The Latin America-focused firm, currently raising Fund III with a $500m target, has now exited all investments from its second energy fund.

Conduit Capital Partners, the Latin America-focused energy infrastructure fund manager, has exited an investment in a Peruvian electric company for 3.3 times the money it invested in it.

The firm sold its 7 percent stake in the company, Lima-based Edegel, for $50 million, according to a statement. The buyer was Inkia Energy, Conduit’s current partner on the investment, Conduit said.
Conduit invested $21 million in Edegel in 2002 from its Latin Power II fund.

In addition to the $29 million profit from the sale, Conduit also said it received about $20 million in distributions from the investment until the time of the sale, according to the statement.

Edegel was the last remaining asset in the Latin Power II fund. Scott Swensen, Conduit’s chairman, said the fund is still open but has no more assets.

“It’s effectively done,” he said.

Fund II was raised in 1998 and closed on $157 million in total commitments. Its successor, Latin Power III, was raised in 2006 and closed on $392 million in total commitments.

Latin Power III is now 90 percent committed, Conduit said in the statement.

Infrastructure Investor recently learned from a market source that Conduit is already busy raising a successor fund, Latin Power IV, targeting $500 million.

Swenson declined to comment on anything related to Fund IV.

Latin Power III’s largest investment is in Kuntur, a $3 billion gas and liquids pipeline development in Peru. Conduit has invested $94 million in the project through Latin Power III and owns a 100 percent equity stake in the company.The project will build two pipelines totaling 1,100 kilometers in the South of Peru.

Conduit may already have a ready-and-willing buyer for the Kuntur. In March, infrastructure developer Odebrecht signed an agreement that gave it an option to purchase a 51 percent stake in the project at a future date in exchange for funding development studies Kuntur needed to complete.

“There are a number of other strategics that are interested in acquiring an interest as well,” Swensen said.