Panda Power raises $420m for power generation

The fund manager closed its maiden private equity fund after raising $420m from pensions and other institutions. Panda already has exposure to power generation assets, including traditional and alternative facilities, sprinkled across the US.

Texas-based Panda Power Funds, an energy investor, has formally closed its debut private equity fund after obtaining $420 million in capital commitments. 

The vehicle, dubbed the Panda Power Generation Infrastructure Fund, is a hybrid of sorts in that the capital will be directed to develop and acquire North American fossil fuel and alternative energy assets. Public and private pension funds as well as non-profits and other institutional investors are allocating to the portfolio.

Panda Power already has exposure to emerging power projects, including a pair of clean-burning natural gas power facilities poised for construction in the Texas cities of Sherman and Temple. Combined, the projects command some $2 billion in financing and have the capacity for 1,950 megawatts of power. 

The firm has a separate investment in a $94 million, 110-acre solar energy farm in the state of New Jersey, which according to Panda represents the biggest such facility in the north-eastern US.

Todd W. Carter, Panda Power Funds senior partner, is encouraged by the response from the institutional investor community.

“The closing of our first private equity fund, in this capital market environment, is a validation of the business strategy, market knowledge and industry relationships developed by an executive team that has worked closely together for many years. We are well positioned to execute our business plan and to take advantage of the significant opportunities we see in the power sector,” he said in a statement.

Panda Power turned to Beacon Hill Financial Corporation for placement agent services while Compass Advisors advised on the capital raising efforts. Latham & Watkins provided legal counsel.