4 July 2013 – Global energy-focused private equity firm Denham Capital has formed a group called Endeavor Energy. The firm is seeding the new company, which will focus on developing and investing in power generation facilities across the continent, with an initial commitment of US$100 million.
This funding will come from its US$3 billion Fund VI raised in 2012 and will obtain co-investment from other financial investors and project level equity partners in the future. The financial strength of Denham allows Endeavor Energy to simultaneously pursue multiple projects across Africa.
The new company will invest in thermal (natural gas-fired and other technologies) and hydroelectric power projects in Africa. Its primary focus will be to identify and develop independent power projects in mid-to-late stage development within capacity short markets where the projects can help reduce the cost of power. Endeavor Energy will team up with local partners as it develops projects.
Denham has appointed Sean Long as chief executive Officer of Endeavor Energy. Long has more than 20 years of experience in the development and financing of power related facilities in emerging markets. Joining Long’s senior management team are four senior power industry executives who have successfully developed more than 25 power projects in 16 countries with a capital investment in excess of US$3.3 billion. Combined, the Endeavor Energy management team has been involved in the development and acquisition of power related projects across the globe including in Ghana, Morocco, Mozambique, Nigeria, South Africa, Togo, China, Guam and India.
Endeavor Energy is currently considering a portfolio of power projects in various stages of development in Botswana, Cameroon, Ghana, Malawi, Mozambique, Nigeria, Sierra Leone, Tanzania and other countries representing over 2,000 MW of aggregate generating capacity. It expects to invest in controlling equity stakes over the next five years as these projects are developed and financed.