NGP raises $500 million for investments in sustainable real assets

NGP has closed its new NGP Sustainable Real Assets fund with $500 million in capital from its own dedicated energy transition fund and other co-investors.

The fund was formed to invest in real asset development platforms across the energy transition – including clean power, clean fuels, carbon, transportation and critical minerals. NGP SRA invests by partnering with management teams it deems “exceptional,” often at the earliest stages of company formation, and provides capital and support to help build leading energy transition platforms.

“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,” said Sam Stoutner, NGP partner. “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.”

NGP is a private equity firm with more than 35 years of investment experience in the energy field. With over $23 billion of cumulative equity commitments, NGP says it backs “portfolio companies focused on responsibly solving and securing the energy needs of today and leading the way to a cleaner, more reliable, and more affordable energy future.”

“We see a big opportunity to deploy an investment model NGP has honed over the last three decades into these attractive clean energy subsectors,” said Chris Carter, NGP’s managing partner, in a company release announcing the $500 million commitment on Monday.

NGP SRA has already closed investments in three companies and continues to evaluate new opportunities to add to its portfolio, Carter said. NGP SRA generally targets equity commitments of $50 million to $150 million per investment.

Here are the fund’s current three investments:

• Segue Renewables II, LLC: Segue invests in development-stage energy transition projects and the infrastructure enabling them. Segue provides capital and expertise to originate, de-risk, optimize, and monetize projects. Segue Renewables II is the second partnership between the Segue management team and NGP.
• Cloverleaf Infrastructure, LLC: Cloverleaf develops clean-powered, ready-to-build sites for the largest electric loads. Leveraging management’s extensive expertise in the power and data center sectors, Cloverleaf collaborates with regional U.S. utilities and data center operators to deliver scalable clean electricity through strategic investments in transmission, grid interconnection, land, onsite power generation and electricity storage.
• CO280 Solutions, Inc.: CO280 is the leading developer of carbon dioxide removal projects in the pulp and paper industry. The company partners with pulp and paper companies to develop, finance, own and operate carbon removal projects that deliver a new standard of permanent, verifiable and affordable carbon removal credits to the voluntary carbon market.

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