Tenaska Capital Management has closed its second fund with $2.4 billion in capital commitments. The Omaha, Neb.-based firm focuses on private equity opportunities in the u.S. energy industry. Greenhill & Co. served as fund placement agent.
Tenaska Capital Management, LLC (TCM), an affiliate of Tenaska, Inc. (Tenaska), today announced the final closing of TPF II, L.P. (TPF II), with more than $2.4 billion of committed capital. TPF II is the follow-on fund to the $838 million Tenaska Power Fund, L.P. (TPF I) closed in 2005. TCM is the manager of TPF II, which is being led by the same investment team that oversaw the investing activities of TPF I.
TPF II’s investment professionals will build on the successful investment strategy utilized for TPF I and continue to take a disciplined approach to investing in the following sectors of the U.S. energy industry: power generation (including renewables); natural gas storage, pipeline and other gas midstream assets; and natural gas and power infrastructure goods and services. The team, which has extensive energy industry experience, will work in close coordination with Tenaska, one of the largest privately held energy companies in the U.S., to secure unique investment opportunities and optimize the value of those investments post acquisition.
“The opportunity drivers in our core sectors (including strong demand for energy, aging infrastructure suffering from chronic underinvestment, rising environmental concerns and financial distress) – combined with our ability to provide capital and our operating expertise – play to our strengths,” said TCM Senior Managing Director Paul G. Smith. “As a result, we are seeing attractive opportunities across all of our sectors to deploy our capital and apply our operating skills.”
Since its initial closing in October 2007, TPF II has completed three investments and committed to a fourth. The investments include four gas-fired power generation facilities with a combined generating capacity of 2,900 megawatts and the formation of Voyager Midstream, LLC for investments in natural gas facilities.
“We view the strong support of our investors, particularly in light of current market conditions, as a resounding endorsement of our proven investment strategy and the attractiveness of our core sectors,” said TCM Senior Managing Director Alan B. Levande. “We are pleased to welcome back so many of our TPF I limited partners and to have attracted new investors from across North America, Europe, Asia and Australia.”
“We are pleased by the positive reception TPF II has received from investors, as well as by the quality of our transactions and the pace of our investment activity thus far,” said TCM Senior Managing Director Daniel E. Lonergan. “We look forward to continuing to identify unique investment opportunities and working to generate attractive returns over the long term.”
Investors in TPF II include leading global financial institutions, endowments and public and private pension funds. Despite the challenging current financial environment, many TPF I investors increased their commitments to TPF II. The new fund also attracted a number of first-time investors.
Greenhill & Co., LLC acted as placement agent and Debevoise & Plimpton LLP acted as legal counsel for TPF II.
About Tenaska Capital Management, LLC
Tenaska Capital Management, LLC (TCM), an affiliate of Tenaska, Inc., provides management services to help standalone private equity funds evaluate investment opportunities in the U.S. energy industry and maximize their value post acquisition. Total assets under TCM’s management exceed $3 billion. TCM is the manager of Tenaska Power Fund, L.P. and TPF II, L.P.
About Tenaska, Inc.
Tenaska, Inc. is one of the largest independent power producers in the U.S. Fortune and Forbes magazines rank Tenaska 25th and 26th, respectively, among the largest privately held U.S. companies. Tenaska has developed approximately 9,000 megawatts of electric generating capacity across the U.S. Tenaska affiliates currently operate, manage and own in partnership with other companies eight power plants in six states totaling approximately 6,800 MW of generating capacity. Tenaska is headquartered in Omaha, Nebraska, with offices in Dallas, Texas; Denver, Colorado; and Calgary, Alberta, Canada. Tenaska affiliates also market natural gas, electric power and biofuels, with Tenaska’s natural gas marketing affiliate ranked as one of the top 10 natural gas marketers in North America. Tenaska affiliates are also involved in private equity fund and acquisition management, fuel supply, natural gas exploration, production and transportation systems and electric transmission development. For more information about Tenaska, visit the company’s Web site at www.tenaska.com.