Energy Capital closes second fund on $4.3bn

The fund exceeded its initial $3.5bn target, and will invest primarily in North American infrastructure assets.

Energy Capital Partners has held a final close on $4.3 billion for its second fund, exceeding its $3.5 billion target. 
 
Energy Capital Partners II will invest primarily in North American infrastructure assets in the fossil fuel generation, renewable power generation, electric transmission and midstream gas sectors.  The firm used Park Hill Group as a placement agent.
 
The fund has already made a number of investments in each of those sectors – aside from renewable power generation – including an acquisition of three natural gas-fired power generating facilities in New England, purchased from the BG Group in March for $450 million.  
 

Energy
investing

Other investments include the purchase of a 100-mile gas gathering pipeline system under construction in the Barnett Shale region in Texas, an electric transmission line under development in Southern California and an operating business that provides electrical infrastructure construction and maintenance services.

“We haven’t made a renewable investment as of yet, but we are seeing a number of [renewable] opportunities,” a company spokesperson said. “There is distressed wind, solar, geothermal and biomass, so it’s not a shortage of opportunities at this point.”

On Monday, Energy Capital Partners announced the hire of Rahman D’Argenio to its energy investment team in Short Hills, New Jersey. D’Argenio was previously a director at First Reserve.

Energy Capital Partners was founded by Doug Kimmelman, Scott Helm and Thomas Lane, all Goldman Sachs alumni, in 2005. It closed its first fund, Energy Capital Partners I, in 2007 on $2.25 billion, and currently has over $7 billion in assets under management.