Energy Capital Partners closes its third fund at $5 bn

Energy Capital Partners announced on Monday the final closing of Energy Capital Partners III, LP (Fund III) at $5.043 billion in commitments, surpassing the fund’s $3.5 billion target.

Energy Capital’s total cumulative commitments are now in excess of $13 billion having raised Fund I at $2.25 billion in 2006, Fund II at $4.335 billion in 2010 and a mezzanine credit lending vehicle of $805 million in 2013 as well as co-investment capital participating in seven individual Energy Capital investments.

Fund III was launched in July 2013 and raised in 8 months, attracting a diverse base of over 300 limited partner investors from North America, South America, Europe, Asia and the Middle East. The first close was held in late December, just three months before the Fund’s final close on March 31.

The new fund has closed on its first investment, the acquisition of NESCO Holdings Inc., a specialty equipment rental company to the electric utility industry.

Energy Capital focuses its private equity investments on control situations in the North American energy sector with a concentration in the power generation and the midstream oil and gas sectors.

The firm also focuses on related energy and environmental service and equipment businesses that are directly related to these two core areas of asset focus. The mezzanine debt fund focuses on the same energy sectors in providing highly customized lending solutions for middle market energy borrowers in support of their growth initiatives.

Energy Capital Partners is made up of a team of 49 across offices in Short Hills, NJ, Houston,TX and San Diego, CA.

UBS Securities LLC served as global placement agent for Fund III and Kirkland & Ellis LLP served as the fund counsel.