American Capital said Wednesday that it is expanding its investment activities into the energy infrastructure sector. The firm has formed American Capital Infrastructure which will be led by Paul Hanrahan. Hanrahan, who will be CEO of American Capital Infrastructure, is the prior President and CEO of The AES Corp. Rich Santoroski, also of AES, joins American Capital Infrastructure as an MD, while Rajeev Garside be a VP.
American Capital Ltd. (Nasdaq: ACAS) (“American Capital” or the “Company”) announced today the expansion of its investment management activities into the energy infrastructure sector with the formation of American Capital Infrastructure. American Capital Infrastructure will be led by Paul Hanrahan, CEO.
American Capital Infrastructure plans to manage investments in global energy infrastructure assets, including power generation facilities, power distribution and transmission networks, energy transportation assets and fuel production opportunities. Joining Mr. Hanrahan are Rich Santoroski, Managing Director, and Rajeev Garside, Vice President. The creation of American Capital Infrastructure will expand American Capital’s energy investing efforts globally. To date, American Capital has invested $606 million in domestic mid-market oil field services and related companies led by Kevin Kuykendall out of its Dallas, TX office. These investments have produced excellent returns for American Capital shareholders.
“I am very pleased to join and head American Capital Infrastructure,” said Mr. Hanrahan. “Worldwide energy consumption is expected to increase substantially by 2030 and significant investment in energy infrastructure is required to satisfy this demand. This demand is driven by emerging markets experiencing robust economic growth, a rapid expansion of middle class populations and limited existing energy infrastructure. All of these factors create significant investment opportunities for American Capital Infrastructure and I am delighted that our team can lead American Capital into these targeted investments.”
“We are delighted to welcome Paul, Rich and Rajeev, leading industry professionals with extensive experience in the global energy industry, to head American Capital Infrastructure,” said Malon Wilkus, American Capital Chairman and Chief Executive Officer. “The team’s background as both investors in and operators of energy infrastructure assets in high-growth and developed markets make them uniquely qualified to lead American Capital’s initiative into energy infrastructure investments. The team’s track record of managing and investing in energy infrastructure assets across the energy value chain during multiple stages of development is a tremendous advantage for the future development of American Capital Infrastructure.”
American Capital Infrastructure is part of American Capital’s asset management affiliate, American Capital, LLC. American Capital, LLC is dedicated to creating, capitalizing and managing alternative investment funds across asset classes, including real estate, private equity and private finance. American Capital has committed $200 million to support American Capital Infrastructure initiatives.
“The launch of American Capital Infrastructure is an important milestone for American Capital, LLC,” noted John Erickson, American Capital’s Chief Financial Officer. “We’ve already achieved significant success building American Capital’s asset management platform. We believe the addition of Paul Hanrahan and his team gives us the capability to continue this success.”
Mr. Hanrahan joins American Capital after serving as the President and CEO of The AES Corporation (NYSE: AES) (“AES”), a Fortune 150 global power company, from 2002 through 2011. Under his leadership, AES generated total returns for stockholders over three times that of the S&P 500. Prior to assuming the CEO position at AES, Mr. Hanrahan was COO and Executive Vice President of AES and President and CEO of AES China Generating Co., Ltd. During his tenure at AES, Mr. Hanrahan was responsible for establishing operations in Europe, Asia, Latin America and the United States. He was directly involved in multiple acquisitions, expansions, and greenfield development of energy and natural resource businesses around the world ranging in size up to several billion dollars of enterprise value. Mr. Hanrahan currently serves on the boards of Arch Coal, Ingredion, Great Point Energy, LLC, and AquaVentures Holdings, LLC.
Mr. Santoroski joins American Capital after holding several senior roles at AES including Executive Vice President, Chief Risk Officer, and Co-Head of Global Development. Mr. Santoroski oversaw commercial strategy development for AES’ global platform and co-managed AES’ development efforts with specific focus on Asia and global M&A. In addition, Mr. Santoroski served on the AES Executive Committee, where he actively participated in key decisions of the company, including providing corporate level approval and oversight of strategic and investment decisions. Prior to joining AES, Mr. Santoroski worked for several years at New York State Electric and Gas as an engineer and energy trader.
Mr. Garside joins American Capital after serving as an Operating Partner of Potomac Energy Fund, a private equity firm focused on growth capital for the energy and natural resource markets, where he led and managed portfolio company investments. Mr. Garside previously served as Vice President, Special Projects and Managing Director, New Business Development and mergers and acquisitions at AES. During his time at AES, he focused on critical corporate initiatives including capital restructuring, international growth strategy, operations, overall corporate cost structure and organization. Prior to joining AES, Mr. Garside held a number of senior roles at private equity firms where he focused on leveraged buyouts, growth equity and venture investments in energy.
ABOUT AMERICAN CAPITAL INFRASTRUCTURE
American Capital Infrastructure will manage investments in global energy infrastructure assets, including power generation facilities, power distribution and transmission networks, energy transportation assets, and fuel production opportunities.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. American Capital manages $18.6 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $118 billion of total assets under management (including levered assets). From its seven offices in the U.S. and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $500 million. For further information, please refer to www.AmericanCapital.com.
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