One of the biggest and most well known private equity firms in the U.S. oil and gas business sees big potential for rapid growth in the renewable energy space and formed a team to invest in lower-carbon energy systems.
Houston-based private equity firm EnCap Investments LP said Sept. 23 that it established a team of four energy industry experts to pursue opportunities in cleaner energy technologies, including wind, solar and gas power generation backed by battery storage.
"Fossil fuels will continue to play an essential role in meeting global energy demand in the coming decades. However, renewable energy sources are poised for rapid growth," EnCap Managing Partner Doug Swanson said in a news release. "Similar to our move into the midstream space 10 years ago, we believe the market dynamics in renewables will present very exciting investment opportunities for our firm."
EnCap's new team consists of Jim Hughes, Tim Rebhorn, Shawn Cumberland and Kellie Metcalf, who have over 110 years of combined experience in the power and renewable sectors, according to the release. EnCap declined to comment beyond the release.
Over the past 30 years, EnCap has raised 21 institutional investment funds totaling about $37 billion. It manages money on behalf of more than 350 U.S. and international investors. EnCap invests in the North American midstream sector through EnCap Flatrock Midstream, a venture capital firm EnCap formed with Flatrock Energy Advisors LLC in 2008. EnCap Flatrock manages four growth capital funds, which together have about $9 billion in capital commitments from institutional investors.
