Starwood infra fund tops target

Starwood Energy Infrastructure Fund II closed on $983m, and will target renewable energy assets in North America.

Starwood Energy Infrastructure Fund II (SEIF II) has reached its final close with $983 million raised, beating its initial target of $750 million.

Characterising interest in SEIF II as “robust,” Barry Sternlicht, chairman of Starwood Energy Group Global, in a statement noted the total amount raised finished just short of its $1 billion ‘hard cap’.

Sternlicht went on to point out that SEIF II began fundraising in January 2012, and secured commitments from pension plans, funds-of-funds, insurance companies and sovereign wealth funds (SWFs).

SEIF II will invest in solar, wind, natural gas and “other power generation and high-voltage transmission assets primarily in North America,” Starwood Energy Group pointed out.

“We are focused on a market that has an annual opportunity set approaching $100 billion in the US and Canada,” said Brad Nordholm, chief executive of Starwood Energy Group.

Nordholm cited the low cost of domestic natural gas has “proven” renewable energy technologies “have created a rich environment” for Starwood Energy Group.

SEIF II will follow the “middle-market, value-add focus” of Starwood Energy Infrastructure Fund I (SEIF I), which held its final close in June 2008 on total commitments of $483 million, according to Starwood Energy Group.

SEIF I is invested in the ‘Hudson Transmission Project,’ a 600-megawatt (MW) transmission line in New Jersey; the 69MW ‘Starwood SSM Project’, a solar photovoltaic plant in Ontario, Canada; the ‘Starwood Midway’ 120MW simple-cycle peaking plant in California; and the 272MW ‘Thermo Facility’ combined-cycle power plant in Denver.

Campbell Lutyens acted as placement agent for SEIF II, while Kirkland & Ellis acted as legal counsel.

Starwood Energy Group is headquartered in Greenwich, Connecticut and has $1.9 billion in assets under management (AUM).