Energy Capital Partners hits $5 bln on Fund III

Firm: Energy Capital Partners

Fund: Energy Capital Partners III LP

Target: $3.5 billion

Amount raised: $5.04 billion

Placement Agent: UBS Securities LLC

Legal counsel: Kirkland & Ellis LLP

All told, Energy Capital Partners III LP raised $5.04 billion in commitments in eight months, surpassing the $4.34 billion raised in its predecessor fund, Energy Capital Partners II, in 2010.

The firm closed Fund I with $2.25 billion in 2006. It also raised $805 million in 2013 for a mezzanine credit lending vehicle of $805 million as well as co-investment capital.

The Short Hills, New Jersey-based firm has closed on its first investment from the fund via the acquisition of Nesco Holdings Inc, a specialty equipment rental company serving the electric utility industry.

The fund takes aim at control deals in the North American energy sector, with a concentration in two core areas: power generation and the midstream oil and gas sectors. It also focuses on related energy and environmental service and equipment businesses directly related to its these two core areas.

Energy Capital Partners employs a team of 49 working in its offices in Short Hills, Houston and San Diego. Executives listed in a Form D filing for the fund include Douglas Kimmelman, Murray Karp, Peter Labbat, Thomas Lane, Christopher Leininger, Paul Parshley, Tyler Reeder, Jordan Robinson and Andrew Singer.

Other big energy funds of late include $6 billion raised in Energy Fund XVI from EIG Global Energy Partners and $7.7 billion for Riverstone Holdings’s latest fund, Riverstone Global Energy and Power Fund V.