Former KKR & Co. managing director Tim Short has launched an energy transition investment platform that will make bets in North America.
Acadia Infrastructure Capital will work with investors to create bespoke structures akin to separately managed accounts, according to Short, describing it as a “somewhat unconventional” approach.
“We are directly partnering with both institutional investors and corporations in sourcing and deploying capital for energy transition investments, rather than raising a dedicated blind pool fund,” said Short, the firm’s managing partner, said in an interview.
Acadia will utilize certain features of the Inflation Reduction Act of 2022 to plug funding gaps in the US renewable energy market, said Short, who worked at Capital Dynamics for more than a decade before joining KKR in 2021.
Acadia, named in part for the national park in Maine, expects to deploy capital as soon as the first quarter of 2024 and plans to write equity checks of $25 million to $200 million.
The firm is targeting core-plus through value-add infrastructure returns, which are typically 10% to 15%, net of fees.
“Energy transition infrastructure investing, done well, remains a middle-market play,” said Michael Hamilton, a partner at New York-based Acadia who joined from AMP Capital.
The Inflation Reduction Act is likely to spur some $3 trillion in renewable energy technology investments, Goldman Sachs Group Inc. research analysts wrote in April.
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