In a major financial milestone, LS Power Group has successfully closed its fifth investment fund, securing $2.7 billion in commitments. This new fund, named LS Power Equity Partners V LP, not only exceeded the firm’s initial $2.5 billion target but also surpassed the $2.25 billion raised by its previous fund.
LS Power Closes $2.7B Fund : New Fund Surpasses Expectations
The LS Power Equity Partners V LP will focus on expanding investments in power and energy infrastructure. To date, the fund has already allocated or committed approximately $1.6 billion across various sectors, including renewable and gas-fired generation, renewable fuels, and green hydrogen.
A highlight of the fund’s early investments is the acquisition of Algonquin Power & Utilities Corp.’s North American renewable energy business. This deal, valued up to $2.5 billion, includes three gigawatts of operating projects and an eight-gigawatt development pipeline covering 12 states and five U.S. markets.
Rising Demand for Energy
LS Power CEO Paul Segal emphasized the fund’s strategic importance, citing a surge in electricity demand driven by factors such as electrification, the growth of data centers, and a revitalized American manufacturing sector. “Our comprehensive portfolio, which includes generation, transmission, and decarbonization solutions, is designed to enhance the reliability and affordability of electricity while accelerating the transition to cleaner energy,” Segal said.
Support from a Diverse Investor Base
The successful fundraise saw backing from both returning and new global investors. The diverse investor base comprises pension funds, insurance companies, sovereign wealth funds, asset managers, foundations, endowments, and family offices.
