New Energy Capital closes second debt fund on $500m

The firm said every investor from its first North American clean energy credit vehicle participated in the latest fundraising.

New Energy Capital Partners has closed its second clean energy credit fund on its recently announced hard-cap of $500 million.

The fund manager, based in Hanover, New Hampshire, said every investor that committed to its first credit vehicle – which closed on $325 million in 2017 – participated in this fundraising, leading New Energy Capital Infrastructure Credit Fund II to easily beat its $400 million target.

New investors joined as well, the firm said, noting that its investor base includes a mix of endowments and foundations, insurance companies, pension plans, health systems and family offices.

New Energy’s fund series targets clean energy infrastructure and is focused on environmental sustainability, particularly on reducing carbon emissions, according to documents published by the Montgomery County Employees’ Retirement Plan.

The firm said its credit fund will focus on senior and mezzanine debt investments in the North American clean energy space. Sectors the firm is targeting include solar, wind, energy efficiency, storage and water assets in North America. Investments will range between $5 million and $40 million.

“All investors are looking for strong risk-adjusted returns, and many of our investors appreciate our effort to achieve those returns while also delivering a positive environmental impact,” New Energy chief executive Scott Brown said in a statement.

According to the LP Perspectives 2019 survey, conducted by sister publication Private Equity International, 76.1 percent of limited partners plan to keep their allocations to infrastructure credit unchanged over the next 12 months. Over 15 percent said they would increase their commitment level to the strategy, while 8.5 percent plan to decrease it.