Arroyo Energy targets $900m for fifth infrastructure fund
Arroyo Energy Investment Partners is seeking to raise $900m for its fifth flagship fund, targeting midmarket energy infrastructure investments as rising US electricity demand creates opportunities across power generation and fuel infrastructure, according to a report by The Wall Street Journal.
Arroyo Energy Investment Partners is aiming to raise $900 million for its fifth flagship fund, according to a report by The Wall Street Journal. The fund will focus on midmarket energy infrastructure investments as the increasing demand for electricity in the US presents opportunities in power generation and fuel infrastructure, surpassing the $680 million raised by its previous fund.
Texas-based Arroyo, which manages about $4 billion, is also targeting around $500 million in co-investments for the new venture. The firm typically invests between $100 million and $300 million per transaction, focusing on operating or nearly completed energy infrastructure assets such as liquefied natural gas facilities, power generation businesses, and natural gas pipelines.
Arroyo has previously invested in Life Cycle Power, a portable natural gas-fired electricity generation provider, which it sold to Partners Group in 2025 for a gross return of 2.9 times invested capital. The firm also co-invested $179 million in LNG infrastructure operator Seaside LNG, alongside $149 million from co-investors. Arroyo reported an aggregate net return of 1.7 times invested capital across its funds through March 2026.
Its latest fundraising materials highlight five potential transactions involving approximately $875 million of fund capital, alongside potential co-investments, across LNG facilities, power installations, and natural gas pipelines across the US.
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