LS Power Group, a leading development, investment, and operating company focused on the North American power and energy infrastructure sector, announced the closing of its latest fund, LS Power Equity Partners V, L.P.. Fund V had closed in July with total commitments of about $2.7 billion, exceeding its $2.5 billion target. Fund V will invest in power and energy infrastructure assets, platforms, and companies.
Since its founding, LS Power has raised $60 billion in debt and equity capital and has developed and acquired more than 47 GW and 160 power generation projects to support North American energy infrastructure. And LS Power Grid has developed 16 transmission projects, including six 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 utilize its substantial market knowledge, extensive industry network, and significant in-house expertise to invest Fund V’s capital. So far, 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.
The recent investments include the announced acquisition of Algonquin Power & Utilities’ 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.
The 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. And 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.
KEY QUOTES:
“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.”
- Paul Segal, CEO of LS Power
“Over the past thirty years, LS Power has built a platform to meet this moment in the energy transition. 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.”
- Darpan Kapadia, Chief Operating Officer of LS Power
“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.”
- David Nanus, President of LS Power Equity Advisors
