Energy Capital Raises $4.3 Billion Fund

NEW YORK (Reuters) – Private equity firm Energy Capital said on Monday it has raised $4.3 billion for a fund to focus on investing in fossil and renewable power generation, electric transmission and midstream gas sectors.

The firm said that the fund has made several investments — totaling about 20 percent of the fund — including three natural gas-fired power generating facilities in New England and a 100-mile gas gathering pipeline system under construction in the Barnett Shale region in Texas.

Energy Capital’s last fund was $2.25 billion, said Douglas Kimmelman, Senior Partner, in an interview.

He said that raising funds is tougher than when Energy Capital raised its first fund.

“A lot of public pensions, endowments and foundations are putting out less money just because of liquidity concerns,” Kimmelman said. “It took us about a year to raise the fund. It was an extended effort and we’re pretty happy with the results.”

Energy Capital said the fund exceeded a target of $3.5 billion. Kirkland & Ellis served as fund counsel and Park Hill Group acted as placement agent for the fund, the private equity firm said in a press release. (Reporting by Michael Erman and Megan Davies. Editing by Robert MacMillan)