Harbert Management Corp. said its most recent fund has so far collected over $200 million. The interim close of Harbert Power Fund V, LLC includes commitments from pension funds, insurance companies, family offices, foundations, and HMC partners. HPF V will invest in independent (non-utility) power generation and related power assets. A final close is expected later this year with a $500 million target. Harbert Management also said that its power investment fund, Gulf Pacific Power LLC, has closed with $600 million in commitments from the California Public Employee Retirement System. CalPERS has also made a commitment to HPF V.
BIRMINGHAM, AL–(Marketwired – August 22, 2013) – Harbert Management Corporation (“HMC”) is pleased to announce an interim closing of Harbert Power Fund V, LLC (“HPF V”), a fund formed to invest in independent (non-utility) power generation and related power assets.
The close of HMC’s fifth power fund brings total investor commitments to over $200 million and includes commitments from pension funds, insurance companies, family offices, foundations, and HMC partners. A final close of the Fund is anticipated in late 2013 with a target of $500 million in commitments.
Additionally, HMC has announced the close of a separate power investment fund, Gulf Pacific Power, LLC (“GPP”), with $600 million in commitments from the California Public Employee Retirement System (“CalPERS”), the largest public pension in the United States, and HMC affiliates. CalPERS has also made a commitment to HPF V.
HPF V and GPP have similar strategies — both will focus on investing in contracted power assets in North America (U.S. and Canada). The two funds are complementary — GPP will target power assets requiring larger equity investment than HPF V, and HPF V and its investors will have the opportunity to co-invest in investments made by GPP.
A spokesman for HPF V reports that investor interest in this space and in HPF V has been high.
“Investors are attracted to the attributes of power assets in which this fund as well as our previous funds invest. Investment in power assets can provide attractive equity returns that are predictable and relatively low risk due to contracts to sell the plants’ capacity and energy. Additionally, investors receive a current cash component to their return,” the spokesperson said. “We are excited about the prospects for both funds. We have a good pipeline of opportunities and we have an experienced, proven Investment Team.
“The addition of the second fund, GPP, with CalPERS allows us greater reach and visibility in the market and at the same time gives HPF V investors the option to participate in larger asset transactions,” the spokesperson concluded. “We appreciate the confidence in our team and strategy shown by HPF V investors and CalPERS, and we look forward to continuing to build on the success of our first four power funds.”
HMC, an alternative asset management firm with approximately $3 billion in assets under management as of August 1, 2013 is a privately-owned firm formed in 1993 to sponsor alternative asset investment funds. HMC serves foundations and endowments, funds of funds, pension funds, financial institutions, insurance companies, family offices and high net worth individuals across multiple asset classes. Investment strategies include European and US real estate, venture capital, mezzanine debt, independent power, US and Australian private equity, and public securities. Additional information about HMC can be found at www.harbert.net.