American Capital Ltd. (Nasdaq: ACAS) said Oct. 31 that it is expanding its investment management activities into the energy infrastructure sector with the formation of American Capital Infrastructure, which will be led by CEO Paul Hanrahan, a veteran of U.S.-based power producer AES Corp. (NYSE: AES).
American Capital Infrastructure plans to manage investments in global energy infrastructure assets, including power generation facilities, power distribution and transmission networks, energy transportation assets and fuel production opportunities. Joining Hanrahan are Rich Santoroski, Managing Director, and Rajeev Garside, Vice President.
To date, American Capital said it has invested $606m in domestic mid-market oil field services and related companies led by Kevin Kuykendall out of its Dallas office. These investments have produced excellent returns for American Capital shareholders, the company added.
“I am very pleased to join and head American Capital Infrastructure,” said Hanrahan. “Worldwide energy consumption is expected to increase substantially by 2030 and significant investment in energy infrastructure is required to satisfy this demand. This demand is driven by emerging markets experiencing robust economic growth, a rapid expansion of middle class populations and limited existing energy infrastructure. All of these factors create significant investment opportunities for American Capital Infrastructure and I am delighted that our team can lead American Capital into these targeted investments.”
Said Malon Wilkus, American Capital Chairman and CEO: “The team’s background as both investors in and operators of energy infrastructure assets in high-growth and developed markets make them uniquely qualified to lead American Capital’s initiative into energy infrastructure investments. The team’s track record of managing and investing in energy infrastructure assets across the energy value chain during multiple stages of development is a tremendous advantage for the future development of American Capital Infrastructure.”
American Capital Infrastructure is part of American Capital’s asset management affiliate, American Capital LLC. American Capital LLC is dedicated to creating, capitalizing and managing alternative investment funds across asset classes, including real estate, private equity and private finance. American Capital has committed $200m to support American Capital Infrastructure initiatives.
All three new top execs are AES veterans
Hanrahan joins American Capital after serving as the President and CEO of AES from 2002 through 2011. Prior to assuming the CEO job at AES, Hanrahan was COO and Executive Vice President of AES and President and CEO of AES China Generating Co. Ltd. During his tenure at AES, Hanrahan was responsible for establishing operations in Europe, Asia, Latin America and the U.S. He was directly involved in multiple acquisitions, expansions, and greenfield development of energy and natural resource businesses around the world. Hanrahan currently serves on the boards of Arch Coal (NYSE: ACI), Ingredion, Great Point Energy LLC and AquaVentures Holdings LLC.
Santoroski joins American Capital after holding several senior roles at AES including Executive Vice President, Chief Risk Officer, and Co-Head of Global Development. Santoroski oversaw commercial strategy development for AES’ global platform and co-managed AES’ development efforts with specific focus on Asia and global M&A. Prior to joining AES, Santoroski worked for several years at New York State Electric and Gas as an engineer and energy trader.
Garside joins American Capital after serving as an Operating Partner of Potomac Energy Fund, a private equity firm focused on growth capital for the energy and natural resource markets, where he led and managed portfolio company investments. Garside previously served as Vice President, Special Projects and Managing Director, New Business Development and mergers and acquisitions at AES. Prior to joining AES, Mr. Garside held a number of senior roles at private equity firms where he focused on leveraged buyouts, growth equity and venture investments in energy.
American Capital is a publicly-traded private equity firm and global asset manager. Both directly and through its asset management business, it originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. American Capital manages $18.6bn of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $118bn of total assets under management (including levered assets). From its seven offices in the U.S. and Europe, American Capital said that it and its affiliate, European Capital, will consider investment opportunities from $10m to $500m.