Société Générale Asset Management and 4D Global Energy Advisors, the French oil and gas focused private equity manager, have held a final close of the SGAM/4D Global Energy Development Capital Fund. Total funds raised amount to $81m.
The fund held a first close in March 2003 on $60m, including a $25m commitment from Société Générale Asset Management. The fund will invest in between five and eight companies with enterprise values ranging from $50m to $500m.
“We were a bit below the original target for the fund but as a first time fund we are very pleased with the outcome,” said Tighe Noonan, a partner at the Paris-based firm. “We have attracted 15 investors from Europe, the Middle East and the US, including a high number of high net worth individuals.”
The fund is the first private equity fund dedicated to making investments in the oil and gas chain globally, and the first European private equity fund dedicated to the sector. Earlier this year it invested in Italiana Energia e Servizi, a niche refiner based in the north of Italy and is about to close its second investment.
“European dealflow is strong at the moment and there is likely to be a greater focus on this region for the first fund,” said Noonan, adding that a third deal was also in the pipeline.
4D’s team of partners is drawn from a group of energy specialists and includes Simon Eyers, former co-head of utilities at CSFB; Jérôme Halbout, former head of energy at Crédit Lyonnais; and Tighe Noonan, ex-global head of oil & gas at Societe Generale.
The advisory board includes names such as Sadek Boussena, former president of OPEC and former minister of Energy and Industry for Algeria; John Snyder, the founder of Snyder Oil Corp; and Alain Madec, former head of strategy and finance at TotalFinaElf.
Global Private Equity, which is based in Paris, acted as placement agent for the fundraising. Dillon Eustace and White & Case provided legal counsel to the fundraising.