Panda Power Funds said Wednesday that it has raised $420 million with its Panda Power Generation Infrastructure Fund. The pool expects to develop or acquire U.S. natural gas-fueled power plants and utility-scale solar projects in select states. Beacon Hill Financial Corp. was placement agent while Compass Advisors advised on the capital raise. Latham & Watkins was their attorney.
Panda Power Funds today announced the final close of the Panda Power Generation Infrastructure Fund with $420 million in capital commitments. The Panda Fund plans to develop or acquire U.S. natural gas-fueled power plants and utility-scale solar projects in select states. Investors include large public and corporate pension plans and other institutional investors.
“We greatly appreciate the trust and confidence our investors have placed in us,” said Robert Carter, founder and managing partner of Panda Power Funds. “Their investments represent charitable organizations, pensioners and teachers. We look forward to working on behalf of our partners who represent them and to rewarding their confidence in us.”
The Panda Fund currently has investments in an extensive pipeline of power projects including two projects which are primed for construction. Panda’s highly efficient 650-MW Sherman, Texas and 1,300-MW Temple, Texas projects — representing approximately $2 billion in financing — are strategically sited in high growth areas in one of the nation’s fastest growing states. Texas is in need of additional generating capacity having experienced increased burdens on its power system with multiple summer and winter peak demand records set during the past 12 months. The Sherman and Temple projects are expected to be among the cleanest natural gas-fueled power plants in the United States.
The Fund’s first investment was to develop the $94 million, 20-MW Pilesgrove Solar Farm. The 110-acre plant is the largest solar facility in the Northeast United States with more than 71,000 solar panels. The facility began supplying power to the New Jersey grid in late August and is located approximately 28 miles southwest of Philadelphia outside of Woodstown, N.J. The solar project is a joint venture between Panda Power Funds and Con Edison Development, a subsidiary of New York-based Consolidated Edison, one of the nation’s largest investor-owned energy companies.
“The closing of our first private equity fund, in this capital market environment, is a validation of the business strategy, market knowledge and industry relationships developed by an executive team that has worked closely together for many years,” said Todd W. Carter, senior partner of Panda Power Funds. “We are well positioned to execute our business plan and to take advantage of the significant opportunities we see in the power sector.”
Beacon Hill Financial Corporation of Boston acted as the exclusive placement agent for the Panda Power Generation Infrastructure Fund. Compass Advisors, LLP advised on the capital raise, and legal services were provided by Latham & Watkins LLP.
About Panda Power Funds, LP
Panda Power Funds was organized by a majority of the management team at an independent power development company founded in 1982. The Panda Power Funds held its initial closing in 2010.
Headquartered in Dallas, Texas, Panda Power Funds has the ability to internally source and develop, acquire, invest in, and operate large-scale power generation facilities.
Additional information on Panda Power Funds can be found at www.pandafunds.com.