Firm: Conduit Capital Partners LLC
Fund: Latin Power IV LP
Target: $500 million to $750 million
Conduit Capital Partners LLC is planning its next Latin American-focused power fund. The New York City-based shop will target between $500 million and $750 million for Latin Power IV LP.
The predecessor vehicle closed in July 2006 with $393 million in commitments, almost at its $400 million hard cap. As of June 30, Conduit Capital used the fund for 12 deals, and has already had some exits. Investments include a natural gas pipeline in Mexico, two power plants in Jamaica, gas and diesel co-generation plants in Mexico and a hydro-electric plant in Mexico.
For the third fund, the firm used RGM Financial Marketing to solicit pledges from U.S. investors, Principal Advisory Services for Australian investors, and Global Private Equity served as placement agent for the rest of the world. It is not clear which placement firm is working on the new fund.
Conduit Capital was formed in 2003 to continue running the Latin power private equity funds begun at Scudder, Stevens & Clark in 1993. The firm focuses exclusively on energy and power-related deals, zeroing in on control-stake investments in medium-sized independent electrical generating plants and oil and gas pipelines in Latin America and the Caribbean.
Conduit Capital can also serve as the main sponsor, owner or developer of a project and can invest as a minority owner in certain situations. The firm invests mainly in Mexico, Peru and Brazil, but also finds Jamaica, Panama, Costa Rica and Honduras attractive now. In addition, it has investments in Chile, Argentina, Colombia and Guatemala.
The general partner typically writes equity checks of between $25 million and $35 million per deal.
Past backers have included Australia Post Superannuation Scheme, Baylor University, BNP Paribas, Emergency Services and State Super of Victoria, FMO (the Dutch development bank), Mizuho Corporate Bank, MTAA Super and Oklahoma State University.
The company declined to comment for this story.