ECP secures US$1.2 billion continuation fund to acquire Terra-Gen

ECP has completed its first Continuation Fund with US$1.2 billion in capital commitments, and the closing of the fund’s subsequent acquisition of the remaining 50% interest held by ECP’s third fund, ECP III, in Terra-Gen, a leading renewable energy developer and operator.

ECP previously sold a 50% stake in Terra-Gen to First Sentier Investors. The transaction will provide additional capital to support Terra-Gen’s next phase of growth while allowing ECP III to fully exit its original investment in the company.

ECP III originally acquired Terra-Gen in 2015, partnering with an experienced management team to acquire a portfolio of strategically located California renewable assets and capitalize on a number of compelling development opportunities. Since ECP’s initial investment, the Company has more than doubled its portfolio of operating renewable assets and expanded its pipeline of wind, solar, and battery storage projects throughout California and numerous key domestic markets. Terra-Gen currently operates more than 1,600 MW of facilities and has more than 3,000 MW of projects under advanced development, including the Edwards Sanborn solar + storage project, the largest project of its kind in North America.

The lead LP in the Continuation Fund is Blackstone Strategic Partners and included a diverse group of global investors, including existing ECP III limited partners, seeking to invest in a leading, California-focused renewable energy platform with strong environmental, social and corporate governance characteristics.

PJT Partners served as financial advisor on the Continuation Fund transaction. Latham & Watkins LLP served as legal counsel to ECP on the sale of Terra-Gen and the formation of the Continuation Fund. Citi served as lead financial advisor on the sale of Terra-Gen.