New Mexico State Investment Council (SIC) has approved a $150m (€135m) commitment to Hull Street Energy’s latest North American power sector assets fund.
New Mexico SIC’s investment into Hull Street Energy Partners III marks its first commitment to a fund managed by Hull Street Energy.
This investment is part of New Mexico SIC’s infrastructure allocation within its real return portfolio.
Hull Street Energy has set a fundraising target of $1.5bn with a hard cap of $2bn, according to sources familiar with the matter. Hull Street Energy raised $1.12bn in March 2022 for the previous fund in the series.
Energy Partners III expects to generate a high-teen net internal rate of return and will focus on mid-market transactions ranging from $10m to $300m.
The fund’s investment strategy involves acquiring operating power plants that the manager believes are either underperforming or have attractive characteristics. Many of these assets will be renewable, including hydro, solar, thermal natural gas or dual power properties.
To read the latest IPE Real Assets magazine click here.
