Natural Resource Funds in Market – June 2012

by Cindy Smith

  • 11 Jun 2012
  • PE

There are 35 natural resource vehicles in market currently seeking over $40bn in aggregate capital commitments. Thirty-one percent of the funds have already had at least one interim close and aggregate commitments for these vehicles currently stands at just under $5.7bn in total. Since the beginning of 2012, four natural resource funds reached their final close, raising an aggregate $6.5bn in capital commitments.

Of the natural resource funds currently on the road, 46% primarily target the North American market, whereas 40% predominantly seek investment opportunities in Asia and Rest of World and the remaining 14% focus mainly on investments across Europe. The average size of natural resource funds on the road is $1.2bn.

The largest natural resource funds currently in market are First Reserve Fund XIII and Riverstone Global Energy & Power Fund V, with both funds aiming to raise $6bn. The First Reserve Fund XIII fund is managed by First Reserve Corporation and makes control investments in global energy companies. The fund was launched in May this year and is concentrating investments within the US, but will also invest in Brazil, Russia, India, and China. The Riverstone Global Energy & Power Fund V is managed by Riverstone Holdings, an energy and power-focused private equity firm headquartered in the US. The vehicle is the first fund raised by Riverstone Holdings independently of a previous affiliation with Carlyle Group, and aims to invest globally within the oil and gas, energy and power sectors.

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