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. The close makes Energy Capital at least the third fund manager to close a fund above target this year, after Alinda Capital Partners and Cube Infrastructure.

Energy Capital Partners has held a final close on $4.3 billion for its second fund, exceeding its $3.5 billion target, according to a statement issued by the firm.

The close makes New Jersey-based Energy Capital at least the third infrastructure fund manager this year to finish fundraising above target.

In January, Alinda Capital Partners, the infrastructure fund manager led by Chris Beale, closed its second fund on more than $4 billion against a $3 billion target. And in July French infrastructure fund manager Cube Infrastructure held a final close on its debut fund at €1.08 billion against a €1 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.  
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, according to its website.