Arroyo Energy Investment Partners is seeking to raise $900m for its fifth flagship fund, Arroyo Investors Fund V, targeting midmarket energy infrastructure investments, according to Private Equity Wire. The fundraising is positioned around rising US electricity demand and opportunities across power generation and fuel infrastructure, according to Private Equity Wire.
Fund V target and co-investment plans
The target for Arroyo Investors Fund V reportedly exceeds the $680m raised for its predecessor fund, which closed last year, according to Private Equity Wire. The predecessor fund closed alongside $385m in co-investment capital, according to Private Equity Wire.
The Texas-based firm is also targeting around $500m in co-investments for its latest vehicle, according to Private Equity Wire. The firm manages approximately $4bn, according to Private Equity Wire.
Investment strategy and check size
Arroyo typically invests between $100m and $300m per transaction, focusing on operating or near-complete energy infrastructure assets, according to Private Equity Wire. The assets cited include liquefied natural gas facilities, power generation businesses and natural gas pipelines, according to Private Equity Wire.
Its strategy reportedly targets midmarket operators benefiting from increased electricity consumption driven by AI data centres, domestic manufacturing and electrification, according to Private Equity Wire.
Prior investments and reported performance
Previous investments include Life Cycle Power, described as a provider of portable natural gas-fired electricity generation, according to Private Equity Wire. Arroyo sold Life Cycle Power to Partners Group in 2025 after investing $355m through its third flagship fund, according to Private Equity Wire.
The Life Cycle Power transaction generated a gross return of 2.9x invested capital, according to Private Equity Wire. The firm also reportedly invested $179m in LNG infrastructure operator Seaside LNG, alongside $149m from co-investors, according to Private Equity Wire.
Arroyo reported an aggregate net return of 1.7x invested capital across its funds through March 2026, according to Private Equity Wire.
Pipeline cited in fundraising materials
In its latest fundraising presentation, Arroyo identified five prospective transactions involving approximately $875m of fund capital, according to Private Equity Wire. The presentation also referenced potential co-investments tied to those transactions, spanning LNG facilities, power installations and natural gas pipelines across the US, according to Private Equity Wire.
Widely known context: US electricity demand growth is commonly linked in public discussion to AI data centres and electrification, and the article attributes Arroyo’s positioning to those same themes.
