EnCap Investments has announced the closing of a $1.2 billion fund dedicated to investments in the clean energy transition space marking its first investment in the private equity firm that has raised money specifically for clean energy. EnCap had been in discussions with its investor base about pursuing opportunities in energy. With investors more focused on environmental considerations, capital has been pouring into the clean energy space.
The new EnCap Energy Transition Fund I will invest in wind and solar power and energy storage. The fund has already invested in five companies with half the proceeds already deployed. The specific figure of return targets is unclear, it was reported that it would be lower than EnCap’s upstream fund and above what infrastructure funds traditionally generate.
EnCap has consistently generated strong returns across multiple industry and hydrocarbon price cycles by applying a lower-risk, disciplined philosophy that balances capital preservation and value creation. The firm has established a reputation as an innovative, value-added source of growth capital to the independent energy sector. The company also works in partnership with management teams by providing capital markets expertise, strategic direction, and enhanced acquisition and exit options.
EnCap Investments was established in 1988 has been the leading provider of venture capital to the United States energy industry. The firm has raised 22 institutional funds totalling more than $38 billion and currently manages capital on behalf of more than 350 international investors in the United States.