EnCap Investments L.P. has successfully closed EnCap Energy Transition Fund I, L.P. with commitments of approximately $1.2 billion. The fund was created to invest in companies that advance the nation’s transition to a lower-carbon future with a focus on creating wind, solar and energy storage enterprises.
“We are truly grateful for the enthusiastic support we received from both long-standing and new investors," said EnCap Investments Managing Partner Jason DeLorenzo. “As stewards of their capital, we appreciate the continued support of our investors. Coupling our 33-year investment track record with the power and renewable experience of our energy transition team, we have established a best-in-class platform to support a less carbon-intensive future and look forward to supporting its growth over the next decade.”
With its first energy transition fund, EnCap raised committed capital from a diverse set of domestic and international investors including corporate and government-sponsored pension funds, sovereign wealth funds, family offices, endowments, foundations and high-net-worth individuals.
“EnCap’s Energy Transition Managing Partners Jim Hughes, Tim Rebhorn, Kellie Metcalf and Shawn Cumberland have done a remarkable job working with our investor relations team and other EnCap principals to raise the fund while simultaneously building a valuable portfolio,” said EnCap Investments Managing Partner Doug Swanson. “Despite the challenges of the COVID pandemic, we have attracted outstanding talent and begun building value. We believe there are continued profitable investment opportunities across the entire energy value chain, and the addition of this third platform allows us to create dynamic companies that are transforming North America’s power grid.”
The Energy Transition Fund already has deployed capital in five platform investments in the battery storage, distributed power and utility-scale solar and wind sectors — Broad Reach Power, Catalyze, Jupiter Power, Solar Proponent and Triple Oak Power.
“With the support of our investors, we have been able to establish five enterprises that are supporting the transition of the power grid, and their early progress is exceeding our expectations,” said EnCap Energy Transition Managing Partner Jim Hughes. “We have attracted the best talent in the wind, solar and energy storage markets, and each of our companies is ahead of its value-creation plan. We are very pleased with our decision to partner with EnCap and the future of the EnCap Energy Transition platform.”
Vinson & Elkins LLP served as legal counsel to EnCap on the formation of the fund.