LS Power closes $3.1bn energy fund

With the closure of its second energy fund on $3.1 billion, LS Power’s 5-year old private equity arm has become one of the world’s 50 largest private equity firms.

LS Power Group has closed its second, energy-focused private equity fund on $3.1 billion (€2.3 billion) – well more than double its debut fund, which closed in 2005 on $1.2 billion. The latest fund’s initial target was $2.5 billion.

Limited partners in LS Power Equity Partners II include both previous and new investors including endowments, foundations, pension plans, corporations and family offices.

Fundraising was “rapidly completed and oversubscribed”, LS Power said in a statement.

“We are very pleased with the outcome of the fundraising process,” said Jim Bartlett, president of LS Power’s private equity arm.

The fund’s placement agent was Credit Suisse, while Mayer, Brown, Rowe & Maw provided legal counsel.

Closure of the latest fund catapults LS Power into the ranks of the world’s 50 largest private equity firms. Based upon data calculated by sister publication Private Equity International for the PEI 50, a league table ranking firms in terms of the amount of capital raised in the past five years, LS Power is now the world’s 46th largest private equity firm. Download an executive summary of the PEI 50 here.

Founded in 1990 by Mike Segal, the company’s chairman and chief executive officer, LS Power has three arms: power development, private equity investment in the power industry, and asset management relating to its power developments and acquisitions.

The company has more than 100 employees at offices in New York, New Jersey, Missouri, California, Florida and Massachusetts.