Orion Energy Partners, a private equity firm providing creative capital solutions to middle market energy infrastructure businesses, has closed Orion Energy Credit Opportunities Fund II. The fund was oversubscribed with commitments totalling USD816 million, exceeding the target fund size of USD750 million.
Capital commitments to Orion Energy’s new fund represent major global investor markets, with nearly 50 per cent from the US, approximately 20 per cent from the UK & Europe and the remainder from Australia. The investor base comprises multiple state and corporate pension plans, endowments and foundations, asset managers, family offices and high net worth individuals. Together with dedicated co-investment capital of USD200 million, Orion Energy now manages in excess of USD1 billion of investable capital for its specialised investment strategy across the North American energy infrastructure sector.
“Since we kicked off Fund II in early 2016, we have successfully sourced and executed on a number of energy sector investments. Our creative capital structures have enabled our industry partners to maintain control and ownership of their businesses while facilitating long-term growth. This strategy has allowed Orion Energy to build a solid portfolio of investments while delivering attractive returns for our investors,” says Nazar Massouh, CEO, Co-founder and Managing Partner. “On behalf of our entire team, I would like to thank our new investors for their confidence in us and our returning LPs for their continued trust and support.”
Orion Energy focuses on partnering with North American and select international middle market energy companies seeking to drive long-term success through creative credit investments. Deploying this strategy, the firm has been selected as an exclusive long-term capital partner on ten transactions to date, six of which have been publicly announced, representing more than USD500 million in capital investments or approximately 60 per cent of Fund II.
“With final close of Fund II now behind us, we are eager to devote 100 per cent of our resources to harvesting the robust pipeline of transactions we have in front of us,” says Gerrit Nicholas, Co-founder and Managing Partner. “The middle market in energy has been starving for a partner who can provide creative credit solutions to stable and growing businesses, most of whom have faced extremely limited options for debt financing for several years. Orion Energy is filling that void by creating capital partnerships across multiple energy sub-sectors including downstream, midstream, conventional electric power, asset-heavy energy services, renewables, energy storage and other segments of the energy value chain.”
“We would also like to recognise the contribution of everyone at Orion Energy in building our solid investment portfolio and attracting a premier investor base to Fund II,” says Rob Rusk, Co-founder and Partner. “We are extremely proud of the Orion Energy team’s dedication, creativity and hard work.”
