About This Fund
Arroyo Energy Investors Fund III is the third flagship infrastructure fund managed by Arroyo Energy Investment Partners LLC, a Houston, Texas-based independent investment manager specializing in power and energy infrastructure assets across North America and Chile. The fund closed in 2019 with $525 million in committed capital, targeting opportunistic investments in the energy and power sector across the United States, Mexico, and Chile.
Arroyo's investment approach focuses on acquiring equity interests in existing energy infrastructure businesses and assets, as well as late-stage development projects in the power sector. The fund pursues a proprietary deal-sourcing model built on three decades of industry relationships, targeting assets that generate stable, contracted cash flows with potential for operational improvement. Investment themes include conventional power generation, renewable energy assets, and distributed energy resources, with the firm acting as an active, operationally engaged owner throughout the investment cycle.
Fund III demonstrated active portfolio management culminating in the 2025 sale of an approximately 143 MW natural gas-fired combined cycle power plant near Monterrey, Mexico at a total enterprise value of over $440 million. The fund drew commitments from a diversified base of institutional investors including endowments, family offices, foundations, insurance companies, and public and private pension plans. Arroyo subsequently launched Arroyo Investors Fund IV in 2025, which closed with over $1 billion in commitments — nearly double the Fund III raise — reaffirming the firm's institutional standing as a specialist energy infrastructure manager in North America.