News

LS Power to invest in conventional and renewable generation

Fund V will invest in power and energy infrastructure assets, platforms and companies, LS Power said.
LS Power to invest in conventional and renewable generation
(Photo by Sasun Bughdaryan on Unsplash)

LS Power, a development, investment, and operating company focused on the North American power and energy infrastructure sector, announced the close of its latest fund, Fund V, which closed in July with total commitments of approximately $2.7 billion, exceeding its $2.5 billion target.

Fund V will invest in power and energy infrastructure assets, platforms, and companies, LS Power said.

“Demand for electricity in the United States is growing at the fastest rate in decades, driven by electrification, data center proliferation, and an American manufacturing renaissance.,” Paul Segal, CEO of LS Power, said. “Our portfolio of assets and businesses—which spans generation, transmission, and decarbonization solutions—is designed to ensure the reliability and affordability of electricity while accelerating the energy transition. We look forward to investing this capital to help meet the historic challenges facing the U.S. energy sector.”

Since its inception, LS Power has raised $60 billion in debt and equity capital and developed and acquired more than 47 GW and 160 power generation projects to support North American energy infrastructure. In addition, LS Power Grid has developed 16 transmission projects, including 6 utilities in operation across 5 ISO/RTOs that serve 185 million people. These projects include 780+ miles of high voltage transmission, beyond which LS Power Grid has another 350+ miles in development. 

LS Power said it will leverage its market knowledge, industry network, and in-house expertise to invest Fund V’s capital. To date, Fund V has invested or committed approximately $1.6 billion across renewable and gas-fired generation, renewable fuels, and green hydrogen, with an extensive pipeline of additional opportunities. Recent investments include the announced acquisition of Algonquin Power & Utilities Corp.’s North American renewable energy business, comprised of 3 GW of operating projects and an 8 GW development pipeline spanning 12 states, 4 provinces, and 5 U.S. power markets.

“Over the past thirty years, LS Power has built a platform to meet this moment in the energy transition,” said Darpan Kapadia, Chief Operating Officer of LS Power. “The success of this fundraise is a testament to our team’s deep expertise and strong track record through multiple market cycles. We are grateful to our investors, both new and long-standing, for their partnership.”