Private equity investor NGP has announced the close of its NGP Sustainable Real Assets (NGP SRA) fund. The fund launches with approximately $500 million of capital commitments from NGP’s dedicated energy transition fund, NGP Energy Transition IV, L.P., and co-investors.
According to the investor, the Sustainable Real Assets fund was formed to invest in real asset development platforms across the energy transition – including clean power, clean fuels, carbon, transportation and critical minerals.
Commenting on the drive behind the move, Chris Carter, NGP’s Managing Partner, said that NGP has a 35-year track record of partnership-oriented investing, having backed more than 300 development platforms across the energy sector.
“We see a big opportunity to deploy an investment model NGP has honed over the last three decades into these attractive clean energy subsectors.”
The Dallas-based private equity firm explained that NGP SRA invests by partnering with management teams, often at the earliest stages of company formation, and provides capital and support to help build leading energy transition platforms.
Sam Stoutner, NGP Partner, said: “We continue to see a mismatch between the supply of high-quality, shovel-ready clean energy projects, and the capital to build, finance and own those projects.”
“In NGP SRA, we will focus on backing teams and projects earlier in their lifecycle and working with management to build scaled, diversified, derisked projects and platforms that can ultimately be handed off to lower-cost, longer-term pools of capital,” added Stoutner.