Starwood Capital Group Global LLC has closed its Starwood Energy Infrastructure Fund II (SEIF II) with total capital commitments of $983 million to invest in solar, wind, natural gas, and other power generation and high-voltage transmission assets, primarily in North America.
‘We are focused on a market that has an annual opportunity set approaching $100 billion in the U.S. and Canada,’ says Brad Nordholm, CEO of Starwood Energy Group. ‘Currently low domestic natural gas prices and the lower cost of proven renewable energy technologies have created a rich environment.’
Starwood Capital says SEIF II has attracted commitments from a wide range of investors, including sovereign funds, pension plans, funds of funds, insurance companies and other institutional investors. The company says the new fund will follow the middle-market, value-add focus of its predecessor fund, Starwood Energy Infrastructure Fund L.P. (SEIF I), which closed in 2008.
The SEIF I portfolio comprises a number of current and realized assets, including a 69 MW solar photovoltaic project in Sault Sainte Marie, Ontario, that was sold to an infrastructure investor in February 2013. The portfolio also includes the Hudson transmission project, a 660 MW transmission line connecting Ridgefield, N.J., with Midtown Manhattan that commenced operations in June 2013 and connects the New York Power Authority's grid to electricity markets in 13 states and the District of Columbia.