Energy Capital Partners (ECP) raised a $1.2 billion fund that it used to buy a 50% stake in U.S. renewable power and storage developer Terra-Gen from another of its funds, the private equity firm told Reuters on Thursday. The deal pays out investors in the fund Energy Capital Partners III, after the buyout firm invested in Terra-Gen in 2015. It also allows ECP to continue earning fees for managing the stake in the new fund.

For Terra-Gen, the fund provides capital to support developing new projects, something that ECP III would not have been able to do as its cash was already fully deployed.

Founded in 2007, Terra-Gen is one of the largest renewable energy developers in the United States, operating more than 1,600 megawatts of wind, solar, and geothermal facilities in states including California, Colorado, and Texas.


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Source: Reuters

Reporting by David French and Chibuike Oguh in New York; Editing by Marguerita Choy