New York Teachers’ commits $100m to Goldman spin-out(4)

Energy Capital Partners II is targeting $3.5bn for energy infrastructure investments in North America.

The $68 billion New York State Teachers’ Retirement System has made a preliminary commitment to give up to $100 million to Goldman Sachs spin-out Energy Capital Partners II subject to due diligence.

The pension also decided to not change its allocations to various asset classes, including private equity and real estate. New York Teachers’ has a 7 percent allocation to private equity, with a range of 4 to 12 percent, and an actual allocation of 6.7 percent.

The pension allocates 10 percent to investments in real estate, with a range of 6 to 14 percent and an actual allocation of 9 percent.

Energy Capital’s second fund is targeting $3.5 billion for investments in North American energy infrastructure, including power generation, renewables, electric transmission and midstream gas sectors, according to a document from Kirkland & Ellis, the law firm working with Energy Capital on the fund’s formation.

Doug Kimmelman, Scott Helm and Thomas Lane, all Goldman Sachs alumni, founded Energy Capital in 2005. Previously, Kimmelman founded Goldman’s power investment group and Helm co-founded Goldman’s Orion Power Holdings. Lane was a senior mergers and acquisitions banker at Goldman.

In other news, the $109 billion New York State Common Retirement Fund allocated $50 million to Falcon Strategic Partners III. The fund is a $750 million mezzanine fund focused on the lower mid-market, according to documents from the New Mexico State Investment Council.