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Natural Resources Private Equity Fundraising – March 2013

by Kamarl Simpson

  • 11 Mar 2013
  • PE

2012 saw the largest amount of capital raised for natural resources fundraising since 2009, with 21 funds reaching a final close in 2012 having raised an aggregate $22bn. This represents a significant increase in comparison to 2011 and 2010, in which $6.8bn and $8.8bn was raised respectively. Natural resources fundraising looks set to remain optimistic, with three natural resources funds holding final closes so far in 2013 having garnered $6.8bn in capital commitments, combined with 35 natural resources private equity funds currently in market, collectively targeting an aggregate $30bn in capital commitments. Of these funds currently raising, eight have held at least one interim close, totalling $5.4bn in capital commitments to date.

Breaking down these natural resources private equity funds in market by geographic focus, 54% predominantly target investment opportunities in North America, 14% focus on opportunities within Europe, 9% primarily focus on investments in Asia and the remaining 23% invest in regions across Rest of World.

The average target size of these 35 funds in market is $869mn. The two largest natural resources funds in market are First Reserve Fund XIII and Riverstone Global Energy and Power Fund V, which are both seeking $6bn. First Reserve Fund XIII is managed by First Reserve Corporation and specifically focuses on investments in energy, mining, oil and gas, power and renewable energy industries globally. Riverstone Global Energy and Power Fund V is managed by Riverstone Holdings and targets the energy, oil and gas, and power industries and is the first fund from Riverstone Holdings to be raised without the assistance of its joint venture partner Carlyle.

The largest fund to close so far in 2013 is EnCap Energy Capital Fund IX. Managed by EnCap Investments, the fund closed on its hard cap of $5bn and targets upstream oil and gas investments, as well as backing oil and gas exploration and production companies.

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