EnCap Investments has raised $1.5bn (€1.4bn) for its second US energy transition fund.
The amount raised for EnCap Energy Transition Fund (EETF) II at close manager exceeded the $1.2bn EnCap raised for its first fund in May 2021.
As previously reported, Arkansas Teacher Retirement System and Ohio Police & Fire Pension Fund approved $50m and $80m commitments, respectively, to the fund.
IPE Real Assets also reported that Orange County Employees Retirement System approved a $75m commitment to the fund created to invest in solutions to decarbonise the power industry, while also opportunistically investing in low carbon fuels and carbon management.
EnCap said EETF II has already made investment commitments to five portfolio companies including Linea Energy, Parliament Solar, PowerTransitions, Arbor Renewable Gas and Bildmore Renewables.
EnCap said it also has a pipeline of other potential investment opportunities pursuing strategies in renewables, energy storage, clean fuels, and carbon solutions and expects to have eight to 10 portfolio companies in EETF II in total.
EnCap energy transition managing partner, Jim Hughes, said: “We greatly appreciate the strong support from our existing investor base and are pleased to have added a number of new, high-quality investors, both domestically and internationally.
“Since our inception in 2019, we now manage approximately $2.7bn of capital commitments to invest in decarbonisation and are excited for the opportunities ahead of us.”
EnCap managing partner, Jason DeLorenzo, said: “We are pleased EnCap has closed our second energy transition fund and are proud as an organisation to continue the tremendous success of the platform established in 2019.
“We continue to believe all sources of energy are needed to support the world’s growing energy needs and that our Energy Transition Team will build off the significant success achieved to date.”
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