Climate Insider Brief:
- EnCap Energy Transition, a Houston-based firm, closed its second fund at $1.5 billion.
- The fund, known as EETF II, is dedicated to investing in solutions for decarbonizing the power industry and supporting low carbon fuels and carbon management.
- The company has made investment commitments to five portfolio companies through EETF II, aiming to support renewable energy projects that struggle to attract traditional financing.
PRESS RELEASE – May 08, 2024 – A Houston-based energy transition-focused growth capital firm announced the close of its second fund to the tune of $1.5 billion.
EnCap Energy Transition’s Fund II, or EETF II, was created to invest in solutions to decarbonize the power industry, and invest in low carbon fuels and carbon management.This second energy transition fund follows EnCap Energy Transition Fund I, a $1.2 billion fund that deployed capital to seven material portfolio company investments and four fund realizations with Broad Reach Power, Jupiter Power, Triple Oak, and Paloma Solar & Wind.
Previously, the company made investment commitments to five portfolio companies through EETF II, including Bildmore Renewables, Linea Energy, Parliament Solar, Power Transitions, and Arbor Renewable Gas. With the Bildmore arm, the EnCap fund aims to fuel development of renewable energy projects that can’t attract traditional tax equity financing.
EnCap expects to have 8-10 portfolio companies in EETF II in total.
“The EnCap Energy Transition team is proud to have raised a sizeable pool of capital to continue to invest in the opportunity created by the shift to a lower-carbon energy system,” EnCap Energy Transition Managing Partner Jim Hughes says in a news release.
“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,” he continues. “Since our inception in 2019, we now manage approximately $2.7 billion of capital commitments to invest in decarbonization and are excited for the opportunities ahead of us.”
Recently,EnCap was part of a deal in the battery energy storage business carrying an equity value of more than $1 billion. Engie purchased the majority of a startup . Broad Reach’s battery storage business from EnCap Energy Transition Fund I. Broad Reach launched in 2019 with backing from EnCap.
“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,” said EnCap Managing Partner Jason DeLorenzo in a news release.
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SOURCE: Innovationmap
