The Infrastructure and Power Group targets assets across the U.S. power generation, transmission and midstream sectors, which seek attractive risk-adjusted equity returns with current cash flow and capital appreciation. We have an over 30-year track record of investing across investment cycles as one of the first managers focused on the independent power and electric utility industry. We believe there are significant investment opportunities for us in this sector as the United States updates its aging infrastructure and builds new assets to meet capacity needs over the coming decades. We believe the U.S. power sector is currently under-invested, with the International Energy Administration estimating that approximately $2.1 trillion in new generation and transmission investments are needed by 2035(1), as well as approximately $550 billion of estimated new midstream infrastructure investment over a similar timeframe.(2)
Our U.S. infrastructure and power strategy has raised approximately $6.1 billion in equity capital across several funds, which invest in electric generating and transmission facilities, as well as midstream assets and related infrastructure investments. Our highly experienced team of investment professionals takes a barbell approach to balance development and construction of new facilities with acquisitions of existing operating assets with current cashflow. We target assets with long-term contracts to enhance certainty of cashflow and seek to mitigate both interest rate risk and commodity exposure, while avoiding exploration and technology risk altogether. We focus on newer, efficient assets that meet current and anticipated future environmental regulations and ensure our plants are staffed and managed by experienced operators. Our emphasis on long-term, deep industry relationships and high quality investments often unavailable to others makes us a valued partner.
We manage five private equity funds in this strategy: United States Power Fund, L.P. (2002), United States Power Fund II, L.P. (2005), United States Power Fund III, L.P. (2007), EIF United States Power Fund IV, L.P. (2010), and Ares Energy Investors Fund V, L.P. (2015), as well as six related co-investment vehicles focused on U.S. infrastructure and power.
1. According to the International Energy Agency's “Energy Policies of IEA Countries: The United States,” December 2014.
2. INGAA Foundation, “North American Midstream Infrastructure Through 2035: Leaning into the Headwinds,” April 2016.
Lead investor as a catalyst for growth
Los Angeles, Boston, New York, San Francisco
Power Generation, Transmission and Midstream Investments
U.S. Infrastructure and Power