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Private Equity Firms Exclusively Targeting Natural Resources Investments – September 2013

by Luke Goldsmith

  • 11 Sep 2013
  • PE

Preqin’s Fund Manager Profiles shows there are currently 77 private equity firms solely targeting natural resources investments. These firms have collectively raised $33bn in total capital commitments over the last 10 years and have approximately $14bn available in estimated dry powder.

Of these firms, 49% are based in the US but account for 80% of all the capital raised by firms investing only in natural resources. The aggregate capital raised by these US GPs totals $26bn. In fact, of the 77 firms, the top six firms based on total capital raised in the last 10 years are US-based. Just under half (47%) of the natural resources-focused firms in the US are based in Texas. A considerable amount of capital specifically emanate from these firms; these have garnered $18bn in total capital commitments over the last 10 years.

The top five firms in terms of total funds raised in the last 10 years are Quantum Energy Partners, EnerVest, Resource Capital Funds, Sheridan Production Partners and Merit Energy Partners. These firms alone have raised 61% of all the capital raised by companies targeting purely natural resources investments.

Quantum Energy Partners invests across the energy value chain with a particular emphasis on the oil and gas upstream, midstream, oil field service and power generation sectors. The fund manager has raised $5.4bn in capital commitments over the last 10 years. The firm’s most recent fund, Quantum Energy Partners V, closed on $2.5bn in September 2009.

EnerVest was created to acquire, exploit, operate and manage oil and gas properties in North America. The Texan firm has gathered $5.1bn in total capital over the last 10 years. The firm closed EnerVest Energy Institutional Fund XIII recently and this vehicle was their biggest fund to date, reaching a final close on $2bn in March.

Resource Capital Funds is a Colorado-based private equity fund manager with a mandate to make investments in development and growth stage mining companies across a diversified range of commodities. The firm has raised a total of six mining funds since its inception, with its most recent fund, Resource Capital Fund VI closing in June of this year on $2,040mn. The vehicle spent just five months on the fundraising trail, and closed significantly above its original $1,750mn target size, indicating the great levels of interest the strategy attracted.

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