EnCap closes USD-1.5bn second energy transition fund

EnCap Investments LP, which provides growth capital to the energy industry, has closed its second energy transition fund with commitments of about USD 1.5 billion (EUR 1.4bn), the Houston-based firm said on Wednesday.

EnCap Energy Transition Fund II (EETF II) will invest in solutions to decarbonise the power industry, while also pursuing opportunities in low-carbon fuels and carbon management. It has already made investment commitments to five portfolio companies including US renewables company Linea Energy, Parliament Solar, which develops a large solar project in Texas, PowerTransitions, which is focused on decarbonising retiring power facilities, Arbor Renewable Gas, and startup Bildmore Renewables. EnCap says it also has a pipeline of other investment opportunities and expects to have eight to ten companies overall in EETF II.

The EnCap Energy Transition platform was set up in 2019. Its first fund raised USD 1.2 billion and had seven material portfolio company investments and four fund realisations so far including Broad Reach Power, Jupiter Power, Triple Oak, and Paloma Solar and Wind.

(USD 1 = EUR 0.931)

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