NGP Energy Transition IV, L.P. Completes Final Closing at $700 Million

DALLAS–(BUSINESS WIRE)–NGP is pleased to announce the final closing of NGP Energy Transition IV, L.P. (“NGP Energy Transition IV” or the “Fund”) at $700 million of total capital commitments. NGP Energy Transition IV was activated in April 2022 and has invested over $100 million in seven portfolio companies, several of which are profiled below.

​Since 2005, NGP and its affiliates have invested over $1.0 billion in the energy transition, supporting the growth of businesses such as TPI Composites (NASDAQ: TPIC), Renewable Energy Group (sold to Chevron) and Community Energy (sold to AES Corp). In 2020, NGP accelerated its energy transition investment effort and has since committed and invested over $600 million in the energy transition across more than 20 portfolio companies.

NGP believes the transition to a lower-carbon global energy system is well underway. Wind and solar now represent 97% of net power capacity additions in the developed world, electric vehicles have increased to more than 13% of new vehicle sales globally, and just in the last year, more than $150 billion of new U.S. manufacturing was announced across battery, electric vehicle, solar and other key energy transition technologies. Over the next three decades, it is estimated that the energy transition will require more than $100 trillion in investment to reshape our global energy system.

NGP believes it is well positioned to capitalize on the compelling investment opportunities created by the energy transition in the coming years and decades. As dedicated energy investors since 1988, NGP has deep expertise and a nuanced understanding of the complex, interconnected global energy system, a clear differentiator in the energy transition investment landscape.

NGP Energy Transition IV’s strategy is to provide growth capital to companies that drive or enable the growth of renewable energy, the electrification of our economy, the efficient use of energy and resources and the management/reduction of carbon emissions. NGP Energy Transition IV will also invest in businesses that develop, own and operate real assets within the energy transition, a strategy consistent with NGP’s 34-year history of deploying “back and build” capital in the energy sector.

Phil Deutch, NGP Partner and NGP Energy Transition Fund Head, commented, “NGP partners with outstanding management teams to drive significant growth and value creation. Our focus is using our investment experience to assist portfolio companies as they expand operations and invest in growth, consider merger and acquisition options, and identify and execute on exit. Our experience investing exclusively in energy, doing so profitably across multiple cycles, provides a perspective that few others have.”

Chris Carter, NGP’s Managing Partner, added, “Energy transition is key to the future of NGP, and our investment activity in the space is accelerating. We believe NGP is a preeminent energy investor across the energy value chain, and we plan to build from the strong foundation of energy transition investing we’ve established over the last 18 years.”

Selected NGP Energy Transition IV Portfolio Companies