Orion Energy Partners wraps up second credit fund at $816 mln

Orion Energy Partners has closed its second credit fund at $816 million, surpassing its $750 million target. The limited partners of Orion Energy Credit Opportunities Fund II include state and corporate pension plans, endowments and foundations, asset managers, family offices and high-net worth individuals. Asante Capital was the placement agent while Latham & Watkins LLP provided legal counsel to Orion Energy.


NEW YORK–(BUSINESS WIRE)–Orion Energy Partners, L.P. (“Orion Energy”), a private equity firm providing creative capital solutions to middle market energy infrastructure businesses, today announced it has closed Orion Energy Credit Opportunities Fund II (“Fund II”). The fund was oversubscribed with commitments totaling US$ 816 million, exceeding the target fund size of US$ 750 million.

Capital commitments to Orion Energy’s new fund represent major global investor markets, with nearly 50% from the U.S., approximately 20% from the U.K. & Europe and the remainder from Australia. The investor base comprises multiple state and corporate pension plans, endowments and foundations, asset managers, family offices and high net worth individuals. Together with dedicated co-investment capital of US$ 200 million, Orion Energy now manages in excess of US$ 1 billion of investable capital for its specialized investment strategy across the North American energy infrastructure sector.

“Since we kicked off Fund II in early 2016, we have successfully sourced and executed on a number of energy sector investments. Our creative capital structures have enabled our industry partners to maintain control and ownership of their businesses while facilitating long-term growth. This strategy has allowed Orion Energy to build a solid portfolio of investments while delivering attractive returns for our investors,” said Nazar Massouh, CEO, Co-founder and Managing Partner. “On behalf of our entire team, I would like to thank our new investors for their confidence in us and our returning LPs for their continued trust and support.”

Orion Energy focuses on partnering with North American and select international middle market energy companies seeking to drive long-term success through creative credit investments. Deploying this strategy, the firm has been selected as an exclusive long-term capital partner on ten transactions to date, six of which have been publicly announced, representing more than US$ 500 million in capital investments or approximately 60% of Fund II.

“With final close of Fund II now behind us, we are eager to devote 100% of our resources to harvesting the robust pipeline of transactions we have in front of us,” said Gerrit Nicholas, Co-founder and Managing Partner. “The middle market in energy has been starving for a partner who can provide creative credit solutions to stable and growing businesses, most of whom have faced extremely limited options for debt financing for several years. Orion Energy is filling that void by creating capital partnerships across multiple energy sub-sectors including downstream, midstream, conventional electric power, asset-heavy energy services, renewables, energy storage and other segments of the energy value chain.”

“We would also like to recognize the contribution of everyone at Orion Energy in building our solid investment portfolio and attracting a premier investor base to Fund II,” said Rob Rusk, Co-founder and Partner. “We are extremely proud of the Orion Energy team’s dedication, creativity and hard work.”

For more information, visit www.OrionEnergyPartners.com.

Asante Capital acted as global exclusive placement agent and Latham & Watkins LLP acted as legal counsel to Orion Energy.