About This Fund
Arroyo Investors Fund III is a North American energy infrastructure private equity fund managed by Arroyo Energy Investment Partners, LLC, an independent infrastructure-focused firm headquartered in The Woodlands, Texas, with an additional office in Santiago, Chile. Arroyo was established in 2015 by a founding team that previously deployed capital at Bear Stearns and J.P. Morgan across more than 20 infrastructure and energy transactions from 2003 to 2014, accumulating approximately $2 billion in total equity capital sponsored since inception. Fund III held its first close in 2019 and reached a final close of $525 million in December 2021, attracting nine limited partners including endowments, family offices, foundations, fund of funds, insurance companies, and public and private pension funds including Ascension Healthcare Master Pension Trust.
The fund's strategy centers on acquiring controlling or significant equity stakes in existing power generation and energy infrastructure businesses and late-stage development projects across the United States, Mexico, and Chile. Investment focus areas encompass onshore wind and solar generation, natural gas combined-cycle power, liquefied petroleum gas terminals, liquefied natural gas assets, battery storage platforms, and distributed power generation solutions. Arroyo brings in-house operational improvement expertise alongside its financial capabilities, targeting companies where active management can generate measurable value through improved operations, expanded capacity, or add-on development, with a disciplined focus on power generation and energy transportation assets that serve critical economic functions.
Fund III has delivered exceptional performance. Within less than seven years of inception, the portfolio returned more than twice its invested capital across all holdings. Key realized investments include Life Cycle Power, a 897 MW U.S. distributed and mobile power generation fleet sold to Partners Group in late 2025; Gasmar, an LPG import terminal and storage facility at Quintero Bay, Chile; Stella Power Company, a distributed generation platform in Clearwater, Florida; and a 143 MW natural gas combined-cycle plant near Monterrey, Mexico, sold in July 2025 for an enterprise value exceeding $440 million. The fund is substantially fully divested as of mid-2025, with proceeds distributed to its limited partners.