LS Power reaches $2bn hard cap

The US fund manager has closed its third fund well ahead of a $1.5bn target. The fundraising process took just seven months.

LS Power Equity Advisors (LS Power), the New York-based power and energy infrastructure manager, has closed its LS Power Equity Partners III fund (Fund III) on its hard cap of $2.075 billion.

The fundraising was launched in July last year with an initial target of $1.5 billion. That target was exceeded when the firm announced a first closing in December on $1.52 billion.

The fundraising was backed by what the firm described as a “diverse group of new and returning investors” including US and European public and private pension plans, insurance companies, corporations, not-for-profit organisations, endowments, foundations, family offices and Asian and Middle Eastern sovereign wealth funds.

Founded in 1990, LS Power is an independent fund manager with offices in New York, New Jersey, Missouri and California. It develops, owns, operates and invests in power generation and electric transmission infrastructure throughout the US.

The firm’s three funds to date have raised a total of $6.36 billion and have acquired more than 20,000 megawatts of power generating capacity.

Fund III was advised by placement agents Evercore Private Funds Group and Magenta Capital Services, with legal advice provided by Kirkland & Ellis.