EnCap Investments has so far raised $993m (€943.7m) for its latest energy transition fund, which is expected to have a final close of between $1.2bn and $1.6bn in the final quarter of the year, according to an investor.
EnCap Energy Transition Fund II’s expected capital raised at close will be less than a previously reported $2bn fundraising target.
The amount so far for Fund II comprises $973m commitments from limited partners and a $20m co-investment contribution from the manager.
The Arkansas Teacher Retirement System (ATRS) said in a meeting document that it has approved a $50m commitment to the fund. The Ohio Police & Fire Pension Fund has also disclosed making an $80m commitment to the fund.
Fund II will mainly invest by creating new companies to pursue the development of low-carbon energy infrastructure in North America.
The fund will target a net internal rate of returns of 13% to 15% net and 18% to 20% gross returns.
According to ATRS, Fund II has so far committed $865.5m of equity into five portfolio companies.
The investments include a $297.5m commitment to Linea Energy and a $250m commitment to Arbor Renewable Gas.
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