Alabama-based alternative asset management firm Harbert Management Corp (HMC) announced that its fifth fund was able to get capital commitments worth USD 200 million. Harbert Power Fund V was formed by HMC to support independent power generation firms. The investors for the interim closing included insurance firms, family offices, pension funds, foundations and HMC partners. HMC said it has expected to raise USD 500 million for the fifth fund's final closing set late this year.
A spokesman for Harbert Power Fund V said that investors were keen on supporting the fund because it backs power assets. "Investment in power assets can provide attractive equity returns that are predictable and relatively low risk due to contracts to sell the plants' capacity and energy. Additionally, investors receive a current cash component to their return," the spokesman explained.
HMC also recently closed fundraising for Gulf Pacific Power, another fund that would invest in power assets. The California Public Employee Retirement System (CaIPERS) committed USD 600 million to GPP. CaIPERS also participated in the interim closing of HMC's fifth fund.
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