Blue Water Energy hits $861m hard-cap

The first time fund, which will invest in mid-market oil and gas businesses predominantly in Europe, reached its hard-cap after spending less than a year on the fundraising trail.

Blue Water Energy, a London-headquartered firm, has held a final close on its $861 million hard-cap for its maiden fund.  

The firm spent less than a year in the market, according to a statement. At press time Blue Water Energy did not respond to a request for comment. 

Blue Water Energy was set up in 2011 by Graeme Sword, a former partner and head of oil and gas at 3i Group; Jerker Johansson, a former chief executive of UBS Investment Bank; and Thomas Sikorski, former head of the London office at First Reserve Corporation

The firm will target investments in the mid-market oil and gas businesses, predominantly based in Europe. Some of the core subsectors it will target include oilfield services, manufacturing, storage and logistics and reserve development. 

Asante Capital Group and HSBC acted as exclusive placement agents and Kirkland & Ellis and Carey Olsen acted as legal advisors. 

Energy is proving to be a very popular sector, a development which will continue, according to Bain & Company’s Global Private Equity Report 2013. Private equity investment activity in energy has “held steady” in the last four years, accounting for 10 percent of all buyout deal value worldwide in 2012, the report said. 

There have been a number of energy funds in the market recently. In April, Milan-based IDeA Capital reached its €100 million target for its IDeA Energy Efficiency And Sustainable Development Fund. In February, EnCap Investments closed its Fund IX on its $5 billion hard-cap in just 5 months. First Reserve Corporation is also raising an energy fund with a $5 billion target.