LS Power Closes Oversubscribed Fund V at $2.7 Billion
– LS Power successfully closed its latest fund, LS Power Equity Partners V, L.P. (“Fund V”), in July, raising approximately $2.7 billion, exceeding its $2.5 billion target.
– Fund V will invest in power and energy infrastructure assets, platforms, and companies.
– Paul Segal, CEO, highlighted the rapid growth in U.S. electricity demand, driven by electrification, data centers, and manufacturing.
– LS Power’s assets and businesses focus on ensuring reliable and affordable electricity while supporting the energy transition.
– Raised $60 billion in debt and equity capital since inception.
– Developed/acquired over 47 GW and 160 power generation projects in North America.
– Developed 16 transmission projects, including 6 utilities across 5 ISO/RTOs serving 185 million people.
– LS Power Grid has developed 780+ miles of high voltage transmission, with 350+ miles in development.
– To date, approximately $1.6 billion has been invested or committed across renewable and gas-fired generation, renewable fuels, and green hydrogen.
– Recent acquisition: Algonquin Power & Utilities Corp.‘s North American renewable energy business, including 3 GW of operating projects and an 8 GW development pipeline.
– Darpan Kapadia, COO, emphasized LS Power’s preparedness for the energy transition, supported by deep expertise and a strong track record.
– David Nanus, President of LS Power Equity Advisors, noted the immense need for capital in the U.S. energy sector and LS Power’s positioning for growth and innovation.
– Fund V attracted leading pension funds, insurance companies, sovereign wealth funds, asset managers, foundations, endowments, and family offices.
– Many previous LS Power investors returned, alongside new global investors.
– LS Power’s prior fund, Fund IV, closed with $2.25 billion in commitments.
– Evercore Private Funds Group, Leader Capital Markets, and Magenta Capital Corporation Services acted as global placement agents.
– Willkie Farr & Gallagher LLP served as fund counsel.