EnCap Closes Second Energy Transition Fund at $1.5B
EnCap Energy Transition has secured approximately $1.5 billion for the final close of its second fund targeting the transition away from carbon-intensive energy sources.
The EnCap Energy Transition Fund II will target solutions to decarbonize the power industry, while also opportunistically investing in low carbon fuels and carbon management, the firm said.
EnCap launched its energy transition platform in 2019, following over 30 years of supporting upstream and midstream oil and gas operations. It raised $1.2 billion for its inaugural fund in 2021. Despite being a relative pioneer among large fossil fuel-focused PE investors in transitioning to renewable energy, the firm remains substantially involved in oil and gas.
“We are pleased EnCap has closed our second Energy Transition Fund and are proud as an organization to continue the tremendous success of the platform established in 2019,” said EnCap managing partner Jason DeLorenzo. “We continue to believe all sources of energy are needed to support the world’s growing energy needs and that our Energy Transition team will build off the significant success achieved to date.”
EnCap has already made commitments to five portfolio companies through the fund including Linea Energy, Parliament Solar, PowerTransitions, Arbor Renewable Gas, and Bildmore Renewables. The company expects to have 8-10 portfolio companies in the fund.
The firm has raised 25 institutional investment funds totaling approximately $41 billion and manages approximately $2.7 billion to invest in decarbonization.
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