LS Power Group, a development, investment, and operating company focused on the North American power and energy infrastructure sector, has closed its latest fund, LS Power Equity Partners V, L.P.
Fund V closed in July with total commitments of approximately $2.7bn, exceeding its $2.5bn target. Fund V will invest in power and energy infrastructure assets, platforms, and companies.
Paul Segal, CEO of LS Power, said, “Demand for electricity in the United States 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 decarbonization 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 U.S. energy sector.”
Since its inception, LS Power has raised $60 billion in debt and equity capital and developed and acquired more than 47 GW and 160 power generation projects to support North American energy infrastructure, according to a news release. In addition, LS Power Grid has developed 16 transmission projects, including 6 utilities in operation across 5 ISO/RTOs that serve 185 million people. These projects include 780+ miles of high voltage transmission, beyond which LS Power Grid has another 350+ miles in development.
LS Power will leverage its substantial market knowledge, extensive industry network, and significant in-house expertise to invest Fund V’s capital. To date, Fund V has invested or committed approximately $1.6 billion across renewable and gas-fired generation, renewable fuels, and green hydrogen, with an extensive pipeline of additional opportunities. Recent investments include the announced acquisition of Algonquin Power & Utilities Corp.’s North American renewable energy business, comprised of 3 GW of operating projects and an 8 GW development pipeline spanning 12 states, 4 provinces, and 5 U.S. power markets.
“Over the past thirty years, LS Power has built a platform to meet this moment in the energy transition,” said Darpan Kapadia, Chief Operating Officer of LS Power. “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, added, “The need for capital in the U.S. energy sector is immense. With Fund V, LS Power is well-positioned to continue driving growth and innovation amid this historic investment opportunity.”
Investors in Fund V include some of the world’s leading pension funds, insurance companies, sovereign wealth funds, asset managers, foundations, endowments, and family offices, among others. Many previous LS Power fund investors returned as investors for Fund V, and the firm also added new global investors. LS Power’s previous fund, Fund IV, closed with $2.25 billion of commitments.
Evercore Private Funds Group, Leader Capital Markets, and Magenta Capital Services acted as the global placement agents and Willkie Farr & Gallagher LLP served as fund counsel.
