NGP Energy Transition IV, L.P. Completes Final Closing at $700 Million

Rhea-AI Summary

NGP Energy Transition IV has closed at $700 million of total capital commitments. The fund has invested over $100 million in seven portfolio companies and believes the energy transition is well underway.

Positive

• NGP Energy Transition IV closed at $700 million of total capital commitments
• The fund has invested over $100 million in seven portfolio companies
• Wind and solar now represent 97% of net power capacity additions in the developed world
• Electric vehicles have increased to more than 13% of new vehicle sales globally
• Over the next three decades, the energy transition will require more than $100 trillion in investment

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• None.

DALLAS--(BUSINESS WIRE)-- NGP is pleased to announce the final closing of NGP Energy Transition IV, L.P. (“NGP Energy Transition IV” or the “Fund”) at $700 million of total capital commitments. NGP Energy Transition IV was activated in April 2022 and has invested over $100 million in seven portfolio companies, several of which are profiled below.

​Since 2005, NGP and its affiliates have invested over $1.0 billion in the energy transition, supporting the growth of businesses such as TPI Composites (NASDAQ: TPIC), Renewable Energy Group (sold to Chevron) and Community Energy (sold to AES Corp). In 2020, NGP accelerated its energy transition investment effort and has since committed and invested over $600 million in the energy transition across more than 20 portfolio companies.

NGP believes the transition to a lower-carbon global energy system is well underway. Wind and solar now represent 97% of net power capacity additions in the developed world, electric vehicles have increased to more than 13% of new vehicle sales globally, and just in the last year, more than $150 billion of new U.S. manufacturing was announced across battery, electric vehicle, solar and other key energy transition technologies. Over the next three decades, it is estimated that the energy transition will require more than $100 trillion in investment to reshape our global energy system.

NGP believes it is well positioned to capitalize on the compelling investment opportunities created by the energy transition in the coming years and decades. As dedicated energy investors since 1988, NGP has deep expertise and a nuanced understanding of the complex, interconnected global energy system, a clear differentiator in the energy transition investment landscape.

NGP Energy Transition IV’s strategy is to provide growth capital to companies that drive or enable the growth of renewable energy, the electrification of our economy, the efficient use of energy and resources and the management/reduction of carbon emissions. NGP Energy Transition IV will also invest in businesses that develop, own and operate real assets within the energy transition, a strategy consistent with NGP’s 34-year history of deploying “back and build” capital in the energy sector.

Phil Deutch, NGP Partner and NGP Energy Transition Fund Head, commented, “NGP partners with outstanding management teams to drive significant growth and value creation. Our focus is using our investment experience to assist portfolio companies as they expand operations and invest in growth, consider merger and acquisition options, and identify and execute on exit. Our experience investing exclusively in energy, doing so profitably across multiple cycles, provides a perspective that few others have.”

Chris Carter, NGP’s Managing Partner, added, “Energy transition is key to the future of NGP, and our investment activity in the space is accelerating. We believe NGP is a preeminent energy investor across the energy value chain, and we plan to build from the strong foundation of energy transition investing we’ve established over the last 18 years.”

Selected NGP Energy Transition IV Portfolio Companies

Noveon Magnetics

Noveon Magnetics (“Noveon”) is the only high-performance rare earth magnet manufacturer in the U.S. Noveon’s proprietary EcoFlux™ rare earth magnets represent the first significant innovation in rare earth magnet technology in the last 15 years. NGP co-led Noveon’s $75 million Series B capital raise. Learn more about Noveon here.

Dandelion Energy

Dandelion Energy (“Dandelion”) is a leading direct-to-consumer fully-integrated provider of electrified residential heating and cooling solutions with an initial focus on ground source heat pump installations in the U.S. Northeast. NGP co-led Dandelion’s $70 million Series B1 capital raise. Learn more about Dandelion here.

Form Energy

Form Energy (“Form”) is an energy storage technology company that is developing and commercializing an ultra-low-cost iron-air multi-day energy storage technology designed to support intermittent renewable power generation over multi-day/seasonal lapses. Form’s technology will help allow the global electricity system to reliably run on 100% low-cost renewable energy. NGP participated in Form’s $450 million Series E financing. Learn more about Form here.

Rubicon Carbon

Rubicon Carbon (“Rubicon”) is a next-generation carbon solutions provider bringing scale, confidence and innovation to accelerate the evolution of the carbon markets. Rubicon seeks to catalyze climate action through market-based solutions and products, increasing trust and transparency through enterprise-grade products for carbon reduction and removal. NGP participated in Rubicon’s more than $300 million fundraising round. Learn more about Rubicon here.

About NGP

NGP is a premier private equity firm that believes energy is essential to progress. Founded in 1988, NGP is moving energy forward by investing in innovation and empowering energy entrepreneurs in natural resources and energy transition. With over $20 billion of cumulative equity commitments, we back portfolio companies focused on responsibly solving and securing the energy needs of today and leading the way to a cleaner, more reliable, more affordable energy future. For more information, visit www.ngpenergy.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230601006005/en/

Phil Deutch

Partner

NGP

Telephone: (972) 432-1400

inquiries@ngpenergy.com

Source: NGP

FAQ

What is the total capital commitments of NGP Energy Transition IV?

NGP Energy Transition IV has closed at $700 million of total capital commitments.

How much has NGP Energy Transition IV invested in portfolio companies?

The fund has invested over $100 million in seven portfolio companies.

What percentage of net power capacity additions do wind and solar represent in the developed world?

Wind and solar now represent 97% of net power capacity additions in the developed world.

What percentage of new vehicle sales globally are electric vehicles?

Electric vehicles have increased to more than 13% of new vehicle sales globally.

How much investment is estimated to be required for the energy transition over the next three decades?

Over the next three decades, the energy transition will require more than $100 trillion in investment.