North American power and energy infrastructure investor LS Power has raised $2.7bn (€2.4bn) for its latest fund, exceeding its $2.5bn target.
The LS Power Equity Partners V – which will invest in power and energy infrastructure assets, platforms and companies – was backed by pension funds, insurance companies, sovereign wealth funds, asset managers, foundations, endowments and family offices, among others, the manager said.
LS Power said many existing investors renewed their commitment to Fund V, while the fundraising also attracted new global investors.
The previous fund in the series, Fund IV, closed with $2.25bn of commitments.
Paul Segal, CEO of LS Power, said: “Demand for electricity in the US is growing at the fastest rate in decades, driven by electrification, data center proliferation, and an American manufacturing renaissance.
“Our portfolio of assets and businesses—which spans generation, transmission, and decarbonisation solutions—is designed to ensure the reliability and affordability of electricity while accelerating the energy transition. We look forward to investing this capital to help meet the historic challenges facing the US energy sector.”
The manager said Fund V has so far invested or committed approximately $1.6bn in renewable energy, gas-fired generation, renewable fuels and green hydrogen.
The fund’s most recent deal is the acquisition of a non-hydro renewable-energy business from Algonquin Power & Utilities, announced earlier this month.
Darpan Kapadia, COO of LS Power, said: “Over the past thirty years, LS Power has built a platform to meet this moment in the energy transition.
“The success of this fundraise is a testament to our team’s deep expertise and strong track record through multiple market cycles. We are grateful to our investors, both new and long-standing, for their partnership.”
David Nanus, president of LS Power Equity Advisors, said, “The need for capital in the US energy sector is immense. With Fund V, LS Power is well-positioned to continue driving growth and innovation amid this historic investment opportunity.”
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