Energy-focused private equity investor NGP announced the launch of NGP Sustainable Real Assets (NGP SRA), a new dedicated pool of capital focused on real assets investing in the energy transition.

The new fund is launching with approximately $500 million of capital commitments at closing, provided by NGP’s dedicated energy transition fund, NGP Energy Transition IV, L.P., and co-investors

According to the firm, NGP SRA was formed to invest in real asset development platforms across the energy transition including clean power, clean fuels, carbon, transportation, and critical minerals.

Chris Carter, NGP’s Managing Partner said:

“Our strategy with NGP SRA combines NGP’s 35-year track record of partnership-oriented investing, having backed more than 300 development platforms across the energy sector, with our firm’s significant capital, expertise and resources dedicated to the energy transition. We see a big opportunity to deploy an investment model NGP has honed over the last three decades into these attractive clean energy subsectors.”

The strategy partners with management teams, often at the earliest stages of company formation, and provides capital and support to help build energy transition platforms. The group aims for $50 to $150 million per investment.

NGP SRA has already closed investments in three platform companies: Segue Renewables II, which invests in development-stage energy transition projects and the infrastructure enabling them; Cloverleaf Infrastructure, which collaborates with regional U.S. utilities and data center operators to deliver scalable clean electricity through strategic investments in transmission, grid interconnection, land, onsite power generation and electricity storage, and; CO280 Solutions, which partners with pulp and paper companies to develop, finance, own and operate carbon removal projects to deliver verifiable, and affordable carbon removal credits to the voluntary carbon market.

Phil Deutch, NGP Partner and Energy Transition Fund Head, said:

 “We take great pride in our reputation as value-added partners and trusted sector specialists in energy. More than three decades ago, NGP pioneered the investment model that now dominates traditional energy project development. We are excited to commit our experience and capital to advancing energy transition projects while seeking attractive risk adjusted returns for our investors.”