Private equity giant is sighting opportunities in biofuels, renewables development, and energy storage, among others
ARC Financial, Canada’s largest energy-focused private equity manager, is directing its considerable resources to help drive the sector’s campaign to transition toward a net-zero emissions future.
The PE giant has announced that it is expanding the investment mandate of ARC Energy Fund 9, its most recent fund, to include companies pursuing energy transition.
“In addition to our existing focus on traditional oil and gas, our investing activities are broadening to again capture companies that emphasize decarbonization and environmental sustainability,” said ARC CEO Brian Boulanger. “We view energy transition as an expansion of the opportunity set we know well, with the potential for strong returns across a more diversified investing universe.”
Having invested across the energy spectrum for over 30 years, ARC and its Research Institute have developed a unique method to understand the landscape for energy transitions; its record of investment in renewables and clean energy tech companies goes back to the year 2000.
ARC’s expanded investment focus will include growing companies within Canada and across North America. Currently, it is evaluating a number of opportunities in areas such as biofuels, renewables development, energy storage and carbon capture, utilisation and storage (CCUS). It is also anticipating that it will raise capital for a fund dedicated to the energy transition in the future.
“The net-zero-by-2050 imperative has governments, financial institutions and corporations pushing for wholesale change to develop new, low-carbon pathways,” said Peter Tertzakian, deputy director of the ARC Energy Research Institute.
The firm is also maintaining its commitment to pursuing investments in the traditional oil and gas space, given continuing global demand and traditional fuels’ role in supporting the transition to a net-zero emissions energy system.
“In 2020, capital spending into renewables and electric vehicles exceeded global capital spending for traditional oil and gas for the first time,” Tertzakian said. “This trend will continue, and ARC is positioned to leverage its experience and expertise to identify and capitalize on the compelling opportunities."
