About This Fund
Arroyo Energy Investors Fund III is the third flagship infrastructure fund of Arroyo Energy Investment Partners LLC, a Houston, Texas-based specialist investment firm focused on power generation and energy infrastructure. The fund is a 2019 vintage infrastructure vehicle that raised approximately 25 million from institutional limited partners including endowments, foundations, family offices, insurance companies, fund of funds, and both public and private pension systems. Arroyo Energy Investment Partners manages over billion in total equity capital commitments across its fund family, having closed its fourth flagship fund at over billion in July 2025.
The fund pursues equity investments in existing operating energy infrastructure companies and late-stage development projects that generate reliable and contracted cash flows. Core sectors include conventional and renewable power generation, natural gas pipelines, liquefied natural gas facilities, distributed power generation systems, energy storage, and data center infrastructure. Primary geographies are the United States and Latin America (principally Chile and Mexico). Arroyo's investment approach is characterized by disciplined underwriting focused on assets with long-term contracted or regulated revenue streams—enabling a predictable risk-adjusted return profile suited to the liability requirements of institutional investors.
Arroyo Energy Investors Fund III has demonstrated strong asset appreciation through its investment lifecycle. A notable realization involved the sale of a 143 MW natural gas-fired combined cycle power plant near Monterrey, Mexico, at a total enterprise value of more than 40 million—more than ten times the plant's approximate construction cost—demonstrating Arroyo's ability to acquire, operate, and exit energy infrastructure assets at premium valuations. The fund benefits from Arroyo's extensive network of operating relationships, proprietary deal flow, and deep sector expertise in the North American and Latin American power markets accumulated over more than two decades of energy infrastructure investing.