Energy Capital Partners set up an $834 million continuation vehicle to keep riding the Next Wave Energy Partners story a bit longer. Next Wave runs a stand-alone alkylation plant by the Houston Ship Channel, converting natural gas liquids into a cleaner-burning, high-octane gasoline ingredient. The company has been in ECP's portfolio for eight years.
ECP's Fund IV first invested in Next Wave in 2018. With this transaction, Fund IV limited partners have the option to fully monetize their position, and ECP said it will reinvest its own proceeds into the new vehicle.
GCM Grosvenor, Phoenix Insurance, Ardian, StepStone, and North Hudson Resource Partners anchored the vehicle, alongside a mix of new and returning limited partners.
Moelis & Co. advised on the deal, and Latham & Watkins handled fund formation. Founded in Summit, New Jersey, ECP has attracted over $41 billion in institutional capital commitments.
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"It's not something we're going to do with every single asset," said ECP principal Ben Condon. "But when it makes sense, provides good value for existing LPs, and you can see future growth that a CV investor can capitalize on over a three-to-five-year time frame, those are scenarios where it makes sense for us to stay with the businesses longer. You can generate good returns on both sides of the ledger." He views continuation vehicles as one more tool when there is visible upside.
According to Condon, Next Wave is executing well under strong leadership and still has several "value-creation levers" anticipated in the coming two to three years. "Having sat in the boardroom with the management team for so long, I think we're able to underwrite their growth and value creation better than a new buyer," he added. "For us, it made sense to reload with this team." ECP previously used continuation vehicles involving Terra-Gen in 2021 and Calpine Corp. in 2022, and has since exited both.
Private markets managers are refitting older funds to attract a broader buyer pool. PitchBook's August analysis, "Private Equity's Zombie Problem," found that in 2025 about 40% of private equity net asset value sat in funds aged seven years or more, up from roughly 30% in 2022. That shift helps explain why deals like this are showing up more often.
If you invest in secondaries or PE-adjacent vehicles, continuation deals can change when cash comes back, how exits get structured, and where the next leg of value might come from. In short, the hold period can stretch, and that can flow through to your own liquidity timing.
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