Energy Capital Partners Closes $834 Million Continuation Vehicle for Next Wave Energy Partners
Energy Capital Partners (ECP) has successfully closed an $834 million single-asset continuation vehicle for Next Wave Energy Partners. This initiative allows existing ECP IV investors to monetize their stakes while channeling new capital into the energy infrastructure firm.
Key Details:
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Anchors for the Vehicle: The continuation vehicle is backed by notable partners including GCM Grosvenor, Phoenix Insurance, Ardian, StepStone, and North Hudson Resource Partners, in addition to new and returning limited partners.
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Investor Options: Existing ECP IV investors have the opportunity to fully cash out their investments in Next Wave, while new investors can enter via this vehicle.
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Reinvestment: ECP plans to reinvest proceeds into the continuation vehicle.
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Next Wave Profile: Next Wave operates a state-of-the-art alkylation complex located adjacent to the Houston Ship Channel in Pasadena, Texas. The facility converts natural gas liquids into premium alkylate and began commercial operations in early 2024 after development commenced in 2015.
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Production Capacity: Currently, the facility produces approximately 40 MBbl/d, secured through long-term fixed-margin contracts.
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Competitive Advantages: ECP highlights that Next Wave’s process is more cost-effective and has a lower carbon intensity compared to traditional crude-derived options. The firm also sees promising support from a saturated U.S. natural gas liquids market and rising demand for high-octane blendstocks.
Additional Context:
This transaction marks ECP’s third continuation vehicle, following previous vehicles involving renewable energy company Terra-Gen and power generation company Calpine.
Support Team:
- Financial Advisers: Moelis & Company
- Legal Counsel: Latham & Watkins
Key Quote:
Matt Delaney, Partner at Energy Capital Partners, expressed:
“We are proud to have partnered with Next Wave’s management team since the company’s inception and are excited to work together on its next chapter… We believe Next Wave is well positioned to benefit from market tailwinds in the years ahead.”
