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ArcLight Capital closes $3.3bn energy fund

Energy 2

US-based ArcLight Capital Partners has closed its latest fund with $3.3bn in investor commitments and will focus on North America’s energy infrastructure sector.

The firm has previously made a number of renewable energy commitments and will now go on a shopping spree for portfolio assets across the power generation chain.

ArcLight said the fund closed at a level that was significantly in excess of its $2bn target for Fund V and higher than the $2.1bn raised for its predecessor fund.

Daniel Revers, managing partner and co-founder of ArcLight, said, ‘The successful closing of Fund V represents an important milestone in ArcLight’s ten-year history. We are pleased to have attracted some of the world’s largest and most sophisticated investors, including many that are first time investors in ArcLight funds. We believe this is a strong, continued validation of our investment strategy, team and track record.’

Within the renewable energy space, the firm counts hydroelectric generator Brown Bear, European solar thermal company Courant Spain, German wind operator Hurrikan Power Funding within its asset base. It also invests in coal, oil and gas production as well as gas and electric transmission companies. Robb Turner, senior partner and co-founder of ArcLight, said, ‘Energy infrastructure assets are the dominant component of the North American private infrastructure investment opportunity.

‘They also are the most complex, requiring highly specialised skills, capabilities and experience for success. It has been gratifying to see the world’s leading private investors come to the same conclusion, recognising ArcLight’s expertise and insight across the entire energy value chain.’

The investment firm has already invested over $9bn of capital since its inception over a decade ago.