Energy Capital busts through $3.5bn target

The New Jersey-based firm raised more than $5bn for its third flagship fund. 

Energy Capital Partners has held a final close for its third private equity fund on $5.04 billion, above the firm’s $5 billion hard-cap.

The firm launched Fund III last July with a $3.5 billion target and attracted commitments from more than 300 limited partners, according to a statement. LPs in the fund come from North America, South America, Europe, Asia and the Middle East. Fund III reached a first close in late December 2013.

UBS Securities acted as placement agent for Fund III, which will continue Energy Capital’s strategy of making control investments in North American energy companies, with a focus on the power generation and oil and gas storage and transportation sectors. The firm also invests in energy and environmental service and equipment businesses related to its two core focus areas.

Energy Capital has made one investment from the fund to date, acquiring NESCO Holdings, which provides specialty equipment rental services for the electric utility industry.

Energy Capital’s previous flagship vehicle closed on $4.34 billion in 2010 and its debut fund collected $2.25 billion in 2006. The firm also manages an $805 million energy-focused mezzanine debt fund raised in 2013 that lends to mid-market energy companies.

Energy Capital’s team is comprised of 49 professionals and is based in New Jersey.