Energy Capital Partners

Energy Capital Partners (ECP) is an American investment firm headquartered in Summit, New Jersey. It focuses on investments in the energy sector. The firm has additional offices in New York City, Houston, San Diego, Fort Lauderdale and Seoul.

In September 2023, it was announced that Bridgepoint Group would acquire Energy Capital Partners.

Background

ECP was founded in April 2005 by Doug Kimmelman, Thomas Lane and Scott Helm. The three of them were previously senior executives at Goldman Sachs in its investment banking division. ECP focuses in investments in power generation, renewable energy and energy storage assets. It was originally based in Short Hills, New Jersey and later moved its headquarters to Summit.

In January 2007, ECP raised $2.25 billion for its debut fund, Energy Capital Partners I. At the time it was one of the largest debut funds ever raised.

In September 2009, ECP formed Summit Midstream Partners, a platform company to invest in North American gas infrastructure. In September 2012, Summit Midstream Partners, held an initial public offering on the New York Stock Exchange. In September 2015, it was reported that ECP was seeking buyers for its ownership stake in Summit Midstream Partners. Later on ECP exited its ownership of Summit Midstream Partners.

In July 2011, it was reported that the Carlyle Group was in talks to acquire ECP. It came as a surprised due to Carlyle's longstanding relationship with Riverstone Holdings where the two had worked on multiple deals together. However, in the end the deal did not proceed.

In August 2017, Dyal Capital acquired a minority interest of less than 20% in ECP for below $500 million. The transaction valued ECP at less than $2.5 billion at the time. The cash injection was to give ECP a financial cushion for more volatile periods that may not be favorable to fundraising. Some of it was used to pay retention bonuses to its employees as well as buying out the ownership equity of Lane.

In November 2022, it was reported that Bridgepoint Group was in talks to acquire ECP for $1 billion. It was speculated that the acquisition would allow ECP to establish a presence in Europe. On September 6, 2023 it was announced that both sides agreed to the deal involving cash and stock which would close within four to six months.

In June 2023, ECP established ECP ForeStar, a $2.5 billion credit strategy that focuses on climate change and sustainability. ECP recruited former leaders of Global Infrastructure Partners' credit business to lead the venture.

Notable deals

In 2007, ECP acquired a small stake in Energy Future Holdings as part of an investor consortium buyout led by Kohlberg Kravis Roberts and TPG Inc. for $44 billion. As of December 2022, it remains largest leveraged buyout in history.

In August 2017, ECP led an investor consortium that included Access Industries and CPP Investment Board to take acquire Calpine and take it private for $5.6 billion.

In September 2022, Biffa agreed to be acquired by ECP for $1.55 billion. The transaction was completed in January 2023 and Biffa was delisted from the London Stock Exchange.

In January 2023, it was reported that ECP was working with Sumitomo Mitsui Trust Bank to establish a Japan decarbonization fund.

Regulatory fines

In June 2022, ECP had agreed to pay a $1 million fine to the U.S. Securities and Exchange Commission for allegedly requiring some investors to pay more than their share of fund expenses without getting their approval back in 2017. ECP had also repaid investors more than $3.3 million.

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2005 establishments in New Jersey
Companies based in Union County, New Jersey
Financial services companies established in 2005
Investment management companies of the United States
Private equity firms of the United States
Summit, New Jersey