Starwood Capital Group beats target for latest fund


dollar envelope moneyStarwood Capital Group has held a final close of $983m on its Starwood Energy Infrastructure Fund (SEIF) II, exceeding its $750m target and nearly reaching the $1bn hard cap.

The fund, which was on the road for 12 months, will invest in wind, solar, natural gas and other power generation and high-voltage transmission assets, focusing in North America. It was backed by sovereign funds, pension plans, funds of funds, insurance companies and other institutional investors.

SEIF II follows a $433m energy infrastructure fund closed in June 2008, which has so far received distributions of $287m, the firm said in a statement.

Starwood CEO Brad Nordholm said, “We are focused on a market that has an annual opportunity set approaching $100 billion in the US and Canada.

“Currently low domestic natural gas prices and the lower cost of proven renewable energy technologies have created a rich environment for Starwood Energy Group.

“We believe that our ability to timely deploy capital and expertise by our team of energy industry experts that has doubled in size over the last five years makes Starwood Energy Group a reliable and desirable partner for both sellers and developers.

“SEIF II enables us to continue sourcing and executing on a middle-market strategy that has yielded favorable results, while also strengthening our co-investment capability.”

In April last year Starwood closed its Starwood Distressed Opportunity Fund IX on its $4.2bn hard cap.

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