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EnCap raises $1.2 billion for first energy transition fund

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EnCap Investments closed its EnCap Energy Transition Fund I at $1.2 billion, below its $1.5 billion target, spokeswoman Casey Nikoloric said in an email.

Fundraising started in October 2019 and was stalled by the coronavirus pandemic, she said. Fundraising picked up in the fourth quarter and accelerated in the first quarter of 2021, Ms. Nikoloric said.

“In light of the pandemic, where we really did not have any face-to-face meetings with investors, we view being able to raise $1.2 billion as a great success,” she said.

The fund is expected to invest in creating wind, solar and energy storage businesses.

The energy transition fund has already invested in five businesses in the battery storage, distributed power and utility-scale solar and wind sectors. They are Broad Reach Power, Catalyze, Jupiter Power, Solar Proponent and Triple Oak Power.

“With the support of our investors, we have been able to establish five enterprises that are supporting the transition of the power grid, and their early progress is exceeding our expectations,” said Jim Hughes, managing partner of EnCap energy transition, in the news release.

Investors in the fund include the $51 billion Illinois Municipal Retirement Fund, Oak Brook.