Magnetar spin-out Elda River launches as real assets investment firm

March 5, 2024 (Preqin News) – US energy and infrastructure-focused Elda River Capital Management has announced its launch as an investment firm following a spin-out from alternatives asset manager Magnetar Capital.

Elda River is launched with approximately $1.5bn in AUM and will be led by Managing Partners Eric Scheyer and Adam Daley, both formerly Partners at Magnetar and Co-Heads of its Energy and Infrastructure business. All team members and operating partners of Magnetar’s Energy and Infrastructure unit will join the new entity.

‘After nearly two decades at Magnetar, our team is excited to launch Elda River and we are grateful for the strong support of our investors,’ said Scheyer. ‘Given our team’s experience and the unprecedented amount of capital required across the global energy and energy transition sectors, we believe that now is the ideal time to launch a pure-play investment platform.’

Amid a drive to increase energy security and meet decarbonization targets, the energy transition is expected to be a major driver for infrastructure investment in coming years. According to the United Nations Environment Programme Finance Initiative (UNEPFI), the transition to reach net-zero targets is estimated to require additional investment of $4tn per year.

‘In the long term, the energy transition arguably offers more opportunity to infrastructure than any other asset class’, Alex Murray, VP, Head of Real Assets at Preqin, said in the Preqin 2024 Global Report: Infrastructure.

Aggregate capital raised in the energy and infrastructure sectors has fallen significantly since peaking at $192.3bn in 2022, dropping to $107.4bn in 2023. However, the $72.4bn committed in the fourth quarter of 2023 was the largest quarterly fundraise in the sector’s history.

Some of Magnetar’s largest energy and infrastructure deals include the sale of North American energy infrastructure and logistics owner-operator MPLX, digital infrastructure company Arcadia, and Vesper Energy, a developer and operator of solar panels and energy storage assets.

The team at Elda River has experience leading investment rounds for portfolio companies, such as co-leading a $2.3bn debt financing facility for cloud provider CoreWeave with Blackstone.

‘The team led by Eric and Adam has built a well-respected franchise by directly sourcing distinct private investment opportunities and delivering strong results for investors,’ said Alec Litowitz, Founder of Magnetar and Senior Advisor to Elda River.

Illinois-headquartered Magnetar, which had $13.4bn in AUM as of the end of 2023, invests across a range of industries including healthcare, systematic investing, and alternative credit and fixed income businesses.

According to Preqin data, Magnetar is currently in the process of raising capital for seven different funds, including the MTP Climate Infrastructure Fund, a 2021 vintage that is at its third close. The fund aims to raise $1.3bn and invest across North America in real-world assets like climate infrastructure.

_{The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.}