NGP Launches $500M Fund for Clean Energy Transition
Key Takeaways
- NGP establishes NGP Sustainable Real Assets (SRA) with $500 million for clean energy projects.
- The fund focuses on real asset development in clean power, clean fuels, carbon capture, transportation, and critical minerals.
- NGP SRA partners with early-stage companies to build leading clean energy platforms.
NGP, a leading energy private equity firm, has announced the closing of NGP Sustainable Real Assets (SRA), a $500 million fund for accelerating the energy transition.
NGP SRA leverages NGP's extensive experience in the energy sector to invest in real asset development platforms across various clean energy subsectors.
Targeting Sustainable Growth
The NGP SRA focuses on clean power, clean fuels, carbon capture, transportation electrification, and essential minerals required for clean energy technology. The fund works with management teams, generally in the early stages of company formation. NGP SRA invests capital and experience to help these clean energy platforms become market leaders.
"Our strategy with NGP SRA combines NGP’s 35-year track record of partnership-oriented investing, having backed more than 300 development platforms across the energy sector, with our firm’s significant capital, expertise and resources dedicated to the energy transition," says Chris Carter, NGP's Managing Partner. "We see a big opportunity to deploy an investment model NGP has honed over the last three decades into these attractive clean energy subsectors.”
"We take great pride in our reputation as value-added partners and trusted sector specialists in energy," adds Phil Deutch, NGP Partner and Energy Transition Fund Head. "More than three decades ago, NGP pioneered the investment model that now dominates traditional energy project development. We are excited to commit our experience and capital to advancing energy transition projects while seeking attractive risk adjusted returns for our investors.”
"We continue to see a mismatch between the supply of high-quality, shovel-ready clean energy projects, and the capital to build, finance and own those projects," says Sam Stoutner, NGP Partner. "In NGP SRA, we will focus on backing teams and projects earlier in their lifecycle and working with management to build scaled, diversified, derisked projects and platforms that can ultimately be handed off to lower-cost, longer-term pools of capital.”
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Source: NGP
