Cadent Energy Partners has closed its second private equity fund on $473.3 million (€303 million), surpassing its initial target by nearly $100 million.
The Rye Brook, New York-based firm launched Cadent Energy Partners II in September of last year. Lazard acted as the fund’s placement agent.
Cadent Energy’s first fund closed at $223.9 million in 2005.
The fund’s limited partners consist of university endowments, pensions, charitable endowments, and mix of other institutional investors, according to Jennifer Cochran, Cadent vice president of finance. She declined to discuss further details of the fund’s investor base.
The fund will invest across the energy industry, utilising a buy-and-build strategy.
“Our companies are typically small to medium size, and we look for companies that have growth potential and have a good management team,” said Cochran.
Cadent generally commits between $25 million and $50 million per investment.
Cadent Energy Partners I portfolio companies include Torqued-Up Energy Services, a stimulation and intervention service provider for natural gas wells in Texas and Louisiana, and Ardent Services, a New Orleans-based provider of electrical and instrumental services to various energy companies.
Cadent is headed by managing partners Paul McDermott and Bruce Rothstein, who spun out from RBC Capital Partners in 2003.