Energy Capital Partners has closed the world's largest debut fund specialising in one sector, reflecting surging institutional investor demand for utilities assets.

The firm, led by former Goldman Sachs commodities specialist Doug Kimmelman, closed its fund at $2.25bn (€1.7bn), 50% above its $1.5bn target. The fund was raised in 15 months through placement agent Atlantic-Pacific Capital. Magnus Christensson, a partner at the adviser, said it was a record speed for a fund of this size. Energy Capital was Atlantic-Pacific's fourth close of the year. It also closed Nordic buyout firm CapMan's eighth fund at €440m ($579m) in the summer. The debut fund will invest in energy infrastructure assets, including power generation, gas storage and pipelines, in North America. Last month, it conducted its first deal, buying regional power generator NE Energy from Northeast Utilities for $1.34bn, including $320m in senior and second-lien facilities. Kimmelman said: "We are proud to have built a team experienced in structured finance and commodity risk management, as well as operating and owning power assets, with strong industry relationships." Energy's strategy will follow that used at Goldman, with direct intervention in the running of the portfolio companies to develop commodity risk management tools, such as selling forward future electricity outputs to hedge providers.