ArcLight Announces Successful Closing of Renewable Infrastructure Continuation Fund

Rhea-AI Summary

ArcLight Capital Partners has successfully closed its first continuation fund, ArcLight Renewable Infrastructure Fund SM SPV, L.P., acquiring a 25% interest in the 192MW Sidney Murray Hydroelectric Project. Fund V, which initially acquired this interest in 2011, had aggregated a larger position through subsequent acquisitions. ArcLight has invested over $4 billion in renewable infrastructure since 2001 and aims to optimize projects for stakeholders. The Fund is anchored by affiliates of GCM Grosvenor and HarbourVest, reflecting ArcLight's strategy in the evolving energy transition landscape.

Positive

• Successful closing of the ArcLight Renewable Infrastructure Fund, facilitating future investments.
• Acquisition of a 25% interest in the Sidney Murray Hydroelectric Project, enhancing portfolio diversification.
• Track record of investing over $4 billion in renewable infrastructure, indicative of strong market presence.

Negative

• None.

BOSTON, July 8, 2021 /PRNewswire/ -- ArcLight Capital Partners, LLC ("ArcLight") announces the successful closing of ArcLight Renewable Infrastructure Fund SM SPV, L.P. (the "Fund"), ArcLight's first continuation fund. ArcLight also announces the Fund's contemporaneous acquisition of a 25% interest in the 192MW Sidney Murray Hydroelectric Project ("Sidney Murray") from ArcLight Energy Partners Fund V, L.P. ("Fund V").

Fund V originally acquired an interest in Sidney Murray in 2011 and aggregated a larger position through a series of subsequent acquisitions. The balance of Sidney Murray is owned by affiliates of Brookfield.

"Sidney Murray is a world-class, baseload renewable energy resource selling power under long-term contracts to investment grade counterparties," said Dan Revers, Founding Partner of ArcLight. "ArcLight is excited to continue to work to optimize the project for the benefit of all stakeholders."

Since inception in 2001, ArcLight has invested over $4 billion of equity capital in 16 renewable infrastructure platforms – including Great River Hydro, Leeward Renewable Energy, Terra-Gen, and CPV Wind – employing wind, solar, hydroelectric, geothermal and biomass technologies. The closing of the Fund furthers ArcLight's track record of delivering realized returns in clean energy assets that are re-shaping domestic power markets and meeting the ESG goals of ArcLight's constituents. The Fund also represents an important step in ArcLight's broader strategy within the energy transition landscape, where it seeks to deliver flexible capital solutions informed by deep domain experience to the growing opportunity set in this market.

The Fund is anchored by affiliates of GCM Grosvenor and HarbourVest and includes continued investment from certain existing Fund V limited partners.

Evercore and TD Securities USA served as financial advisors to ArcLight. Latham & Watkins LLP and Ropes & Gray LLP served as counsel to ArcLight.

About ArcLight

ArcLight is one of the leading energy infrastructure firms. Founded in 2001, the firm helped pioneer an asset-based approach to investing in the energy sector. ArcLight has invested approximately $25 billion in 112 transactions since inception. Based in Boston, the firm's investment team employs a hands-on value creation strategy that utilizes its in-house technical, operational, and commercial specialists, as well as the firm's approximately 1,500-person asset management affiliate. More information about ArcLight, and a complete list of ArcLight's portfolio companies can be found at www.arclight.com.

About GCM

GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately $65 billion in assets under management across private equity, infrastructure, real estate, credit, and absolute return investment strategies. The firm is in its 50th year of operation and is dedicated to delivering value for clients in the growing alternative investment asset classes. GCM Grosvenor's experienced team of approximately 500 professionals serves a global client base of institutional and high net worth investors. The firm is headquartered in Chicago, with offices in New York, Los Angeles, Toronto, London, Tokyo, Hong Kong, and Seoul. For more information, please visit: www.gcmgrosvenor.com.

About HarbourVest

HarbourVest is an independent, global private markets investment specialist with over 35 years of experience and more than $76 billion in assets under management, as of March 31, 2021. The Firm's powerful global platform offers clients investment opportunities in private equity, private credit and real assets and infrastructure through primary fund investments, secondary investments, and direct co-investments, in commingled funds or separately managed accounts. HarbourVest has more than 700 employees, including more than 150 investment professionals across Asia, Europe, and the Americas. This global team has committed more than $46 billion to newly-formed funds, completed over $29 billion in secondary purchases, and invested over $21 billion directly in operating companies. Partnering with HarbourVest, clients have access to customized solutions, longstanding relationships, and actionable insights.

 

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SOURCE ArcLight Capital Partners

FAQ

What recent acquisition did ArcLight Capital Partners make related to GCMG?

ArcLight Capital Partners recently acquired a 25% interest in the Sidney Murray Hydroelectric Project as part of closing its first continuation fund.

What is the significance of ArcLight's new continuation fund for GCMG investors?

The continuation fund signifies ArcLight's commitment to renewable energy investments, which may influence GCMG's asset management strategies.

How much has ArcLight invested in renewable infrastructure since its inception?

ArcLight has invested over $4 billion in renewable infrastructure platforms since it was founded in 2001.