(Dow Jones) Chilean firm SCL Energia Activa has raised US$241m of third-party commitments for a sophomore fund to invest in Latin American energy assets. The firm initially targeted up to US$300m for Americas Energy Fund II LP. Including the general partner commitment, Fund II’s final tally is US$247m, according to a person with knowledge of the fundraising. Fund II is a follow-up to Americas Energy Fund I LP, which closed at US$160m in 2013.
This time, SCL widened its investor base, expanding beyond backers from Chile, Colombia and Peru to include investors in Europe, the U.S. and Asia. Of the capital raised, approximately 45% was committed from local and regional investors, 30% from Europe, 20% from North America and 5% from Asia.
SCL Energia invests primarily in Latin American energy assets, including power generation, transmission and distribution, coal production and infrastructure, focusing primarily on Chile, Peru, Colombia and Central America. The firm typically makes control investments of at least $20 million, LBO Wire previously reported, citing an investor presentation.
SCL used its debut fund to invest in assets including a 23-megawatt hydroelectric power plant and a 15-megawatt biomass cogeneration plant in Chile, as well as a 918-megawatt natural-gas-fired power plant in Colombia. Fund II has already invested capital into five new assets across the energy, power and renewables sectors. SCL was formed in 2008 through a partnership between investment firm SCL Energia and Activa, the private equity arm of Latin American financial services shop LarrainVial SA. The firm seeks to capitalize on the imbalance of supply and demand of energy in growing Latin American economies.
SCL’s new fund comes as energy deals dominated the Latin American private equity landscape last year, on a dollar basis. The Latin American Private Equity and Venture Capital Association recorded eight transactions valued at US$1.64b.
Depressed oil and natural gas prices could only serve to accelerate deal making over the next year as firms seek to acquire ancillary businesses in the energy space, LAVCA President Cate Ambrose said in February. Chadbourne & Parke LLP served as legal counsel to SCL Energia Activa during the fundraise; Asante Capital Group acted as placement agent for the fund.