Omaha, Nebraska-based Tenaska Capital Management has announced the final closing of Tenaska Power Fund II, the follow-on fund to the USD838m Tenaska Power Fund that closed in 2005, with mo
Omaha, Nebraska-based Tenaska Capital Management has announced the final closing of Tenaska Power Fund II, the follow-on fund to the USD838m Tenaska Power Fund that closed in 2005, with more than USD2.4bn in committed capital. The new fund is being led by the same investment team that oversaw the investing activities of TPF I.
Building on the investment strategy used for TPF I, the new fund will invest in various sectors of the US energy industry including power generation (including renewables), natural gas storage pipeline and other midstream assets, and natural gas and power infrastructure goods and services.
‘The opportunity drivers in our core sectors, including strong demand for energy, aging infrastructure suffering from chronic underinvestment, rising environmental concerns and financial distress, combined with our ability to provide capital and our operating expertise play to our strengths,’ says based Tenaska Capital Management senior managing director Paul G. Smith. ‘As a result, we are seeing attractive opportunities across all of our sectors to deploy our capital and apply our operating skills.’
Since its initial closing in October 2007, TPF II has completed three investments and committed to a fourth. The investments include four gas-fired power generation facilities with a combined generating capacity of 2,900 megawatts and the formation of Voyager Midstream for investments in natural gas facilities.
‘We view the strong support of our investors, particularly in light of current market conditions, as a resounding endorsement of our proven investment strategy and the attractiveness of our core sectors,’ says senior managing director Alan B. Levande. ‘We are pleased to welcome back so many of our TPF I limited partners and to have attracted new investors from across North America, Europe, Asia and Australia.’
Investors in TPF II include financial institutions, endowments and public and private pension funds. Greenhill & Co acted as placement agent and Debevoise & Plimpton was legal counsel for TPF II.
Tenaska Capital Management, which has more than USD3bn in assets under management, is a subsidiary of one of the largest independent power producers in the US. Tenaska has developed around 9,000 megawatts of electric generating capacity across the country and its operate, manage and own in partnership with other companies eight power plants in six states totalling some 6,800 MW of generating capacity.
