Energy Capital Partners has closed an $834 million single-asset continuation vehicle for Next Wave Energy Partners, providing existing ECP IV investors with a liquidity option while bringing new capital into the energy infrastructure company.
The continuation vehicle is anchored by GCM Grosvenor, Phoenix Insurance, Ardian, StepStone and North Hudson Resource Partners, alongside additional new and returning limited partners.
ECP IV investors can fully monetize their interests in Next Wave, while new investors can gain exposure to the company through the continuation vehicle.
ECP is reinvesting its own proceeds into the 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 began developing the project in 2015 and achieved commercial operations in early 2024.
The facility currently produces approximately 40 MBbl/d under long-term fixed-margin contracts with customers.
ECP said the company’s process can produce alkylate at lower cost and with lower carbon intensity than crude-derived alternatives.
The investment firm sees additional support from an oversupplied U.S. natural gas liquids market, growing demand for high-octane blendstocks and Next Wave’s Gulf Coast location.
The transaction represents ECP’s third continuation vehicle.
Its previous vehicles involved renewable energy company Terra-Gen and power generation company Calpine, which closed in April 2021 and June 2022, respectively, before being exited in October 2024 and January 2026.
Support: Moelis & Company served as financial adviser to 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. Next Wave’s exceptional team has delivered outstanding results, including developing and commercializing a first-of-its-kind production process, a leading safety track record, and providing reliable production for an attractive mix of high-quality customers. With this solid foundation, we believe Next Wave is well positioned to benefit from market tailwinds in the years ahead.”
Matt Delaney, Partner at Energy Capital Partners
