Canadian energy private equity firm ARC Financial Corp said it is expanding the mandate of its most recent fund, ARC Energy Fund 9, to include investing in the energy transition. Fund IX, closed in 2019 at C$780 million, will explore opportunities in biofuels, renewables development, energy storage and carbon capture, utilization and storage. ARC also expects to raise a dedicated energy transition fund in the future.
CALGARY, June 17, 2021 /CNW/ – Canada’s largest energy-focused private equity manager, ARC Financial Corp. (“ARC” or “the Company”), announced today that it is expanding and diversifying the investment mandate of its most recent fund, ARC Energy Fund 9, to include companies pursuing energy transition.
With over 30 years of experience investing across the energy spectrum, ARC and its Research Institute have developed a unique method for understanding the landscape for energy transitions and have a track record of investing in renewables and clean energy technology companies dating back to 2000. ARC is currently engaged in evaluating a number of opportunities in biofuels, renewables development, energy storage and carbon capture, utilisation and storage (CCUS), and also anticipates raising capital for a dedicated energy transition-focused fund in the future.
“In addition to our existing focus on traditional oil and gas, our investing activities are broadening to again capture companies that emphasize decarbonization and environmental sustainability,” said Brian Boulanger, CEO of ARC Financial Corp. “We view energy transition as an expansion of the opportunity set we know well, with the potential for strong returns across a more diversified investing universe. Our expanded focus will be on financing growing companies, both within Canada and across North America”.
ARC is committed to pursuing investments in the traditional oil and gas space, as global demand persists and traditional fuels will continue to support and enable the transition to a net-zero emissions based energy system. Both areas are presenting attractive opportunities for ARC’s capital and expertise.
“ARC doesn’t just bring growth capital to the table. We bring a track record of company building, risk assessment, and scaling businesses, combined with a strong governance structure,” said Boulanger. “We also have a deep relationship network across the energy spectrum, from field level to corporate board rooms to the halls of government, which positions ARC to be the first call for energy capital.”
“The net-zero-by-2050 imperative has governments, financial institutions and corporations pushing for wholesale change to develop new, low-carbon pathways,” said Peter Tertzakian, Deputy Director of the ARC Energy Research Institute. “In 2020, capital spending into renewables and electric vehicles exceeded global capital spending for traditional oil and gas for the first time. This trend will continue, and ARC is positioned to leverage its experience and expertise to identify and capitalize on the compelling opportunities.”
About ARC Financial Corp. (www.arcfinancial.com)
Founded in 1989, ARC Financial Corp. is committed to building high-performing businesses that address the world’s energy and sustainability needs. To date, ARC has raised $6 billion across nine energy-focused funds since the launch of its private equity business in 1997; invested capital in more than 180 companies across the energy landscape. ARC has a broad and experienced team that includes engineers, geologists, geophysicists and finance professionals who provide technical depth for understanding investment opportunities and value creation strategies. The ARC Energy Research Institute supports its investment strategies, proactively identifying key trends, and building relationships with entrepreneurs, industry leaders, and government.