Energy Capital Partners closed an $834 million single-asset continuation vehicle for Next Wave Energy Partners.
The vehicle is anchored by GCM Grosvenor, Phoenix Insurance, Ardian, StepStone, and North Hudson Resource Partners, alongside additional new and returning limited partners.
The transaction gives investors in ECP IV an opportunity to fully monetize their interests in Next Wave while allowing new investors to acquire exposure to the company.
ECP is reinvesting its own proceeds into the continuation vehicle.
Next Wave owns and operates a stand-alone alkylation complex adjacent to the Houston Ship Channel in Pasadena, Texas.
The facility uses natural gas liquids-derived feedstocks to produce premium alkylate.
Next Wave developed a proprietary production process designed to produce alkylate at lower cost and lower carbon intensity than crude-derived alternatives.
The facility began commercial operations in early 2024.
It currently produces approximately 40,000 barrels per day under long-term fixed-margin contracts with customers.
The transaction represents ECP’s third continuation vehicle, following earlier transactions involving Terra-Gen and Calpine.
Moelis advised ECP, while Latham & Watkins served as fund formation counsel.
KEY QUOTES:
“We are proud to have partnered with Next Wave’s management team since the company’s inception and are excited to work together on its next chapter.”
Matt Delaney, Partner at Energy Capital Partners
