ArcLight fundraise gets back on track

After languishing for months, Boston-based ArcLight’s fifth fund appears to be on a marketing tear, having raised nearly $900m since May.

ArcLight Capital Partners has raised almost $1.5 billion for Energy Partners Fund V after undergoing a revival over the past year. The fund, which is targeting $2 billion, was launched in 2009.

The fund has received around $900 million in commitments since May, according to US Securities and Exchange Commission filings. After launching, the firm struggled to find support during its first year on the market, attracting only $383 million in commitments as of January, 2011.

LPs attributed the early weak support for Fund V to two factors: one was shifts in the firm’s investment strategy. The firm’s first two funds focused on high-risk, high-reward private equity style investments. Its third and fourth funds have relied on comparatively low-risk, low-reward infrastructure investments. Sources also indicated that the rapid marketing of the firm’s prior funds had not given LPs the chance to judge performance. ArcLight had raised four funds totaling $4.65 billion between 2003 and 2007.

In 2010, the firm took London-based placement agent MVision off the fund and began marketing with Barclays Wealth. Barclays, which was named on ArcLight’s SEC filings, has been directing “select” clients into the firm's fund, sources told Private Equity International.

Madison Williams is also working as a placement agent on the fund.

ArcLight has kept busy thruogh the fundraising. In July, the firm and a co-investor group including China Investment Corporation, Government of Singapore Investment Corporation and John Hancock Financial services committed over $1 billion to support Enogex, a joint midstream infrastructure venture between ArcLight and the OGE Energy Corporation.

ArcLight was founded in 2001 by Daniel Revers and Robb Turner. The firm, which invests across the energy sector, manages $6.8 billion across its first four funds, according to its website.