Firm: LS Power Equity Advisors LLC
Fund: LS Power Equity Partners III LP
Target: $1.5 billion
Amount Raised: $2.075 billion
Placement Agents: Evercore Private Funds Group, Magenta Capital Services
Legal Counsel: Kirkland & Ellis LLP
The new vehicle, LS Power Equity Partners III LP, is more than a billion dollars smaller than its predecessor Fund II, a vintage 2007 vehicle, which raised $3.085 billion, according to the Thomson One private equity database. The firm’s inaugural fund attracted $1.2 billion in commitments in 2005.
LS Power Equity Advisors said it received commitments from a globally diverse group of returning and new investors, including U.S. and European public and private pension plans, insurance companies, corporations, not-for-profit organizations, endowments, foundations, family offices and Asian and Middle Eastern sovereign wealth funds.
The firm is the investment arm of LS Power, which develops and operates power generation and electric transmission infrastructure throughout the United States. The privately-held company has principal offices in New York, New Jersey, Missouri and California.
The investment focus for the new fund is operating power and energy infrastructure assets, primarily control transactions, a company spokesman said. While the firm will consider investing in companies as well as projects, the company typically manages the projects it acquires, rather than relying on third party management teams, the spokesman said.
The Oregon Investment Council committed $100 million to the new fund in December. The LP’s private equity adviser, Torrey Cove Capital Partners, said Fund III would concentrate exclusively on operating assets and “generally not pursue” the types of development and strategic opportunities in its first two funds.
LS Power has developed or acquired more than 28,000 megawatts of assets throughout the United States, the company says on its website. Fund III held a first close in December on $1.52 billion, it said in its press release.
Evercore Private Funds Group acted as the global placement agent for the fundraising with Magenta Capital Services supporting the effort in the Middle East and Asia, LS Power said in its announcement. Kirkland & Ellis LLP served as legal adviser.