LS Power has closed a $6 billion private equity fund, more than double its previous fund and above its initial $4 billion target. Chief operating officer Darpan Kapadia said the raise was possible because investors see durable, secular demand growth across the power sector, not just from data centers but also manufacturing and electrification. The company plans to use about $1.7 billion of the fund to buy roughly 5 GW from Constellation Energy.
Kapadia described three investment categories: conventional gas-fired generation, renewables including solar, wind, and storage, and distributed resources like demand response and microgrids. He noted that electricity demand growth has accelerated from near zero to 1–5% depending on the region, and much of that demand is for firm capacity that can ramp up and down. At the same time, building new gas infrastructure has become harder and more expensive, so supply will take time to catch up.
The COO also said sentiment swings in renewables are creating opportunities, particularly with non-U.S. sellers repositioning their businesses. LS Power's experience buying distressed assets and its recent acquisition of Algonquin's North American renewable business show how the company is acting on those shifts. Kapadia stressed that today's demand environment differs from the early 2000s, calling the current growth "real" and "extremely durable."