ECP Announces Closing of $1.2 Bn Continuation Fund for RE Platform Terra-Gen

ECP today announced the successful completion of its first Continuation Fund with $1.2 billion in capital commitments, and the closing of the fund’s subsequent acquisition of the remaining 50% interest held by ECP’s third fund, ECP III, in Terra-Gen (the “Company”), a leading renewable energy developer and operator. ECP previously sold a 50% stake in the Company to First Sentier Investors. The transaction will provide additional capital to support Terra-Gen’s next phase of growth, while allowing ECP III to fully exit its original investment in the Company.

ECP III originally acquired Terra-Gen in 2015, partnering with an experienced management team to acquire a portfolio of strategically located California renewable assets and capitalize on a number of compelling development opportunities. Since ECP’s initial investment, the Company has more than doubled its portfolio of operating renewable assets and expanded its pipeline of wind, solar and battery storage projects throughout California and numerous key domestic markets. Terra-Gen currently operates more than 1,600 MW of facilities and has more than 3,000 MW of projects under advanced development, including the Edwards Sanborn solar + storage project, the largest project of its kind in North America.

“As one of the largest owners of renewable assets in the U.S., ECP is excited to continue its partnership with Terra-Gen as it moves into its next phase of growth and executes on a robust pipeline of advanced near-term development opportunities,” said Schuyler Coppedge, Partner at ECP. “We believe that Terra-Gen’s wind and storage assets in particular will serve as critical resources to facilitate the energy transition and help California meet its renewable and decarbonization goals.”

The lead LP in the Continuation Fund is Blackstone Strategic Partners and included a diverse group of global investors, including existing ECP III limited partners, seeking to invest in a leading, California-focused renewable energy platform with strong environmental, social and corporate governance characteristics.

PJT Partners served as financial advisor on the Continuation Fund transaction. Latham & Watkins LLP served as legal counsel to ECP on the sale of Terra-Gen and the formation of the Continuation Fund. Citi served as lead financial advisor on the sale of Terra-Gen.