Private Equity Firms Investing in the Oil and Gas Sector

by Lola Aboderin

  • 28 Jul 2010
  • PE

Preqin’s research shows that there are 206 private equity firms investing in the oil and gas sector globally. Of these, 127 firms have raised one or more private equity funds targeting the sector to some degree since 2003. Preqin’s extensive database shows that the aggregate currently being targeted by firms raising capital for investment in the sector is $21.4 billion. Of the funds currently raising, 60% have held at least one interim close.

Riverstone Holdings is an energy and power-focused private equity firm that partners with private equity firm Carlyle Group, in most of its energy fundraising efforts. Riverstone’s last oil and gas-focused fund was Riverstone/Carlyle Global Energy and Power Fund IV, which raised $6 billion in June 2009.

NGP Energy Capital Management, also known as Natural Gas Partners, invests in private energy enterprises and also co-invests in direct oil and gas property interests alongside its portfolio companies. The firm raised $4 billion in Q1 2008 for investments in oil and gas companies based in the US, through its Natural Gas Partners IX vehicle. Prominent investors in the fund include Indiana Public Employees' Retirement Fund, Los Angeles Fire and Police Pension System and University of Michigan Endowment.

Louisiana-based EnCap Investments raises capital for acquisitions and development projects in the oil and gas sector. The firm is currently raising the $2.5 billion private equity fund, EnCap Energy Capital Fund VIII, which will invest in 25 to 30 start-up companies in the oil and gas exploration sector in North America. The fund commenced its fundraising process in Q2 this year.

For more information on private equity fund managers, please see Preqin's Fund Manager Profiles.

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